This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jul/10/greek-crisis-deal-hopes-mps-vote-tsipras-live

The article has changed 26 times. There is an RSS feed of changes available.

Version 18 Version 19
Greek debt crisis: Tsipras urges MPs to back bailout plan - live Greek debt crisis: Tsipras urges MPs to back bailout plan - live
(35 minutes later)
10.24pm BST22:24
I did the best I could, argues Alexis Tsipras:
I did what was humanly possibly in difficult circumstances - Tsipras #Greece
And Tsipras also points out that it wasn’t he who claimed Greece was voting whether to stay, or leave, the eurozone.
I never asked the public for a No vote to mean a Grexit or rupture - Tsipras #Greece
10.23pm BST22:23
Alexis Tsipras begins by admitting that he has made mistakes in the negotiating process.
And he concedes that the offer has many differences from his pre-election promises (indeed!)
We negotiated as long as we could, and are now looking to avert a “political” Grexit. But there are are pitfalls ahead.
#Tsipras: Yes we made mistakes during the negotiations, no one makes no mistakes, first of all not me. #greece
#Tsipras in parliament: "From now on there is a minefield ahead, there are traps and I cannot hide that from anyone"
10.18pm BST22:18
Here comes Alexis Tsipras....
Greek PM @tsipras_eu begins addressing parliament. #Greece pic.twitter.com/KkD53QUWnK
10.08pm BST22:08
Debate begins
The #IMF's report on the greek debt released after the announcement for the referendum says the fin min @tsakalotos pic.twitter.com/WVwDtXe6AP
Euclid Tsakalotos, the new finance minister, introduces the bill.
He reminds MPs that the IMF was prompted to release its debt sustainability analysis after last Sunday’s referendum was called.
We’re in a better position than before the referendum, he argues, but concedes that the austerity programme on the table will hurt growth.
This isn't going to plan..TSAKALOTOS: Greek proposals better than Juncker’s plan. Have recessionary character. Better than before referendum
10.04pm BST22:04
You can watch the debate here:
#Greece FinMin Tsakalòtos speaking now ► http://t.co/yxfL5nBhKi #GreeceCrisis
9.58pm BST21:58
And they’re off! Greek MPs are finally debating the bailout plan. Result, with any luck, in 3 hours.
Here we go. Deputy speaker Alexis Mitropoulos in the chair. Long night ahead. Voted expected at 3am. #Greece pic.twitter.com/dqE6FZ6okN
9.56pm BST21:56
Greece’s capital controls will remain in place at least until Monday, and possibly rather longer than that.
So local readers should check out this guide by journalist Omaira Gill on how to keep accessing ATMs as safely and easily as possible:
It's 23:45. Do you know where your nearest ATM is? 10 Tips for Better ATMing http://t.co/1KpHtn8svr #Greece #CAPITALCONTROLS
9.41pm BST21:419.41pm BST21:41
Helena SmithHelena Smith
The real opprobrium this evening has been left for former finance minister Yanis Varoufakis whose unexpected take of leave, on such an important occasion, has caused outrage among his fellow MPs.The real opprobrium this evening has been left for former finance minister Yanis Varoufakis whose unexpected take of leave, on such an important occasion, has caused outrage among his fellow MPs.
Accusing the academic-turned-politician of leading Greece to this place - where it has been left staring into the abyss of euro exit, its banks closed, capital controls enforced - the Pasok MP Andreas Loverdos told SKAI TV.Accusing the academic-turned-politician of leading Greece to this place - where it has been left staring into the abyss of euro exit, its banks closed, capital controls enforced - the Pasok MP Andreas Loverdos told SKAI TV.
“Yanis Varoufakis was the worst finance minister this country had since the restoration of democracy in 1974. The fact that he has preferred to get on a boat and go to Aegina [the Saronic Gulf island 16 miles north of Athens] for family reasons is totally unacceptable and shows just how superficial he is.”“Yanis Varoufakis was the worst finance minister this country had since the restoration of democracy in 1974. The fact that he has preferred to get on a boat and go to Aegina [the Saronic Gulf island 16 miles north of Athens] for family reasons is totally unacceptable and shows just how superficial he is.”
The Greek government produced a statement saying Varoufakis had written the president of the parliament a letter explaining that he could not be present “for family reasons.”The Greek government produced a statement saying Varoufakis had written the president of the parliament a letter explaining that he could not be present “for family reasons.”
It says:It says:
“In fact he makes it clear he supports the government, and if he were present would vote ‘yes,’”“In fact he makes it clear he supports the government, and if he were present would vote ‘yes,’”
Updated at 9.41pm BSTUpdated at 9.41pm BST
9.20pm BST21:209.20pm BST21:20
Skai news reports #Greece parliament vote will happen in roughly 4 hours. 3AM local time.Skai news reports #Greece parliament vote will happen in roughly 4 hours. 3AM local time.
9.15pm BST21:159.15pm BST21:15
Greek vote may not come for hoursGreek vote may not come for hours
Helena SmithHelena Smith
And here’s the reason we are facing a long night, from our correspondent in Athens Helena Smith.And here’s the reason we are facing a long night, from our correspondent in Athens Helena Smith.
It may be the most important vote in recent modern Greek history but the president of the parliament, Zoe Konstantopoulou, has decided its 300 members will have to wait.It may be the most important vote in recent modern Greek history but the president of the parliament, Zoe Konstantopoulou, has decided its 300 members will have to wait.
A stickler for following the rules, the young Konstantopoulou is insisting that as the bill is being fast-tracked parliament will have to convene on two consecutive days. As lawmakers were waiting for the session to begin, the fiery leftist called a meeting of parliamentary vice presidents to explain the situation. The meeting is still ongoing.A stickler for following the rules, the young Konstantopoulou is insisting that as the bill is being fast-tracked parliament will have to convene on two consecutive days. As lawmakers were waiting for the session to begin, the fiery leftist called a meeting of parliamentary vice presidents to explain the situation. The meeting is still ongoing.
Sources are saying that as a result the chamber will not start debating until one minute past midnight. The vote is expected to take place around 4 AM (2am BST) although if MPs are feeling loquacious, ballots may not be cast until around 6am (4am BST)Sources are saying that as a result the chamber will not start debating until one minute past midnight. The vote is expected to take place around 4 AM (2am BST) although if MPs are feeling loquacious, ballots may not be cast until around 6am (4am BST)
Konstantopoulou’s formalism is causing waves with several MPs criticising the move on television tonight. With the eyes of the world now focused on Athens, they want to endorse the proposed reforms ASAP.Konstantopoulou’s formalism is causing waves with several MPs criticising the move on television tonight. With the eyes of the world now focused on Athens, they want to endorse the proposed reforms ASAP.
Quite.Quite.
Updated at 9.31pm BSTUpdated at 9.31pm BST
9.10pm BST21:109.10pm BST21:10
It’s going to be a late night, guys...It’s going to be a late night, guys...
#Greece Parliament debate to begin at 1 minute past midnight so that it's "tomorrow" (for procedural reasons). They are fucking kidding us.#Greece Parliament debate to begin at 1 minute past midnight so that it's "tomorrow" (for procedural reasons). They are fucking kidding us.
9.07pm BST21:079.07pm BST21:07
It’s important to remember that Greece hasn’t actually agreed anything with the eurozone.It’s important to remember that Greece hasn’t actually agreed anything with the eurozone.
And there’s no guarantee of success this weekend.And there’s no guarantee of success this weekend.
As one eurozone official told our Ian Traynor:As one eurozone official told our Ian Traynor:
“I’m not optimistic,”“I’m not optimistic,”
“There are too many problems, not enough time, too many people who do not believe the Greeks will deliver their side of the bargain.”“There are too many problems, not enough time, too many people who do not believe the Greeks will deliver their side of the bargain.”
An EU diplomat said eurozone creditors were very fed up with “five months of manipulation” by the Greek side and worried whether or not Tsipras would really push through the reforms demanded by creditors. “It doesn’t matter what they say, they will never do it.”An EU diplomat said eurozone creditors were very fed up with “five months of manipulation” by the Greek side and worried whether or not Tsipras would really push through the reforms demanded by creditors. “It doesn’t matter what they say, they will never do it.”
Here’s Ian’s scene-setter for a dramatic weekend, possibly historic, weekend ahead:Here’s Ian’s scene-setter for a dramatic weekend, possibly historic, weekend ahead:
Related: Greeks facing day of judgment in struggle to stay in eurozoneRelated: Greeks facing day of judgment in struggle to stay in eurozone
8.38pm BST20:388.38pm BST20:38
Another poll has shown that just over 60% of Greeks favour a new bailout programme; coincidentally, the same percentage that voted NO last week.Another poll has shown that just over 60% of Greeks favour a new bailout programme; coincidentally, the same percentage that voted NO last week.
University of Macedonia poll for @skaigr Remain in the #euro with new MoU 60.5% #Grexit - return to drachma 28% #Greece #eurozone #politicsUniversity of Macedonia poll for @skaigr Remain in the #euro with new MoU 60.5% #Grexit - return to drachma 28% #Greece #eurozone #politics
8.29pm BST20:298.29pm BST20:29
More than half of Greeks fear the impact of leaving the eurozone, according to a poll tonight:More than half of Greeks fear the impact of leaving the eurozone, according to a poll tonight:
Skai TV poll Grexit risk makes you feel: Fear 55.5% // Hope 16.5% // Nothing 20.5% #Greece pic.twitter.com/m5KeFxSo11Skai TV poll Grexit risk makes you feel: Fear 55.5% // Hope 16.5% // Nothing 20.5% #Greece pic.twitter.com/m5KeFxSo11
8.26pm BST20:268.26pm BST20:26
Exactly a week ago, tens of thousands of passionate No campaigners packed out Syntagma Square, in a huge demonstration calling for Greece to reject its creditors demands.Exactly a week ago, tens of thousands of passionate No campaigners packed out Syntagma Square, in a huge demonstration calling for Greece to reject its creditors demands.
It’s a different picture tonight:It’s a different picture tonight:
8.10pm BST20:108.10pm BST20:10
8.02pm BST20:028.02pm BST20:02
The FT has launched an profile of Alexis Tsipras tonight, outlining how a pragmatic leader has morphed into a hardliner, to Brussels’ growing annoyance:The FT has launched an profile of Alexis Tsipras tonight, outlining how a pragmatic leader has morphed into a hardliner, to Brussels’ growing annoyance:
Until:Until:
For months, eurozone officials as­sumed Mr Tsipras was simply attempting to maximise concessions before he struck a deal. But some now believe the brinkmanship has always been a way to exit the binding constraints of the euro while blaming European authorities if Grexit goes wrong.For months, eurozone officials as­sumed Mr Tsipras was simply attempting to maximise concessions before he struck a deal. But some now believe the brinkmanship has always been a way to exit the binding constraints of the euro while blaming European authorities if Grexit goes wrong.
Alexis Tsipras in 1990: "If you start a struggle, it's very important to know when to stop." http://t.co/F0UNMDpCAQ pic.twitter.com/jMIOQQUr8MAlexis Tsipras in 1990: "If you start a struggle, it's very important to know when to stop." http://t.co/F0UNMDpCAQ pic.twitter.com/jMIOQQUr8M
7.58pm BST19:587.58pm BST19:58
I guess we’ll find out on Saturday whether Wolfgang Schäuble really wants Grexit, or whether the blame lies elsewhere.....I guess we’ll find out on Saturday whether Wolfgang Schäuble really wants Grexit, or whether the blame lies elsewhere.....
They bluffed, it was called. Not much more to it.. http://t.co/eRcb9KMZBU "Germany won’t spare Greek pain" by Yanis VaroufakisThey bluffed, it was called. Not much more to it.. http://t.co/eRcb9KMZBU "Germany won’t spare Greek pain" by Yanis Varoufakis
Updated at 8.08pm BSTUpdated at 8.08pm BST
7.42pm BST19:427.42pm BST19:42
Varoufakis: Schäuble wants Greece pushed outVaroufakis: Schäuble wants Greece pushed out
In the Guardian tonight, Yanis Varoufakis argues that German finance minister Wolfgang Schäuble has been leading a cabal of eurozone countries who want Greece kicked out:In the Guardian tonight, Yanis Varoufakis argues that German finance minister Wolfgang Schäuble has been leading a cabal of eurozone countries who want Greece kicked out:
That, the former finance minister says, is why they refused to engage with the debt restructuring issue which is vital to Greece’s recovery.That, the former finance minister says, is why they refused to engage with the debt restructuring issue which is vital to Greece’s recovery.
After the crisis of 2008/9, Europe didn’t know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to strengthen discipline? Or move to a federation? So far it has done neither, its existentialist angst forever rising. Schäuble is convinced that as things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble.After the crisis of 2008/9, Europe didn’t know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to strengthen discipline? Or move to a federation? So far it has done neither, its existentialist angst forever rising. Schäuble is convinced that as things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without which the risk of Grexit would fade, has acquired a new usefulness for Schauble.
What do I mean by that? Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.What do I mean by that? Based on months of negotiation, my conviction is that the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone.
Here’s the full piece:Here’s the full piece:
Germany won’t spare Greek pain – it has an interest in breaking us. @yanisvaroufakis writes for the Guardian http://t.co/gN745FACTFGermany won’t spare Greek pain – it has an interest in breaking us. @yanisvaroufakis writes for the Guardian http://t.co/gN745FACTF
Updated at 7.50pm BSTUpdated at 7.50pm BST
7.31pm BST19:317.31pm BST19:31
After days of putting pressure on Europe, the US government has welcome the news that Greece has submitted new reform plans.After days of putting pressure on Europe, the US government has welcome the news that Greece has submitted new reform plans.
It’s not celebrating yet, though.It’s not celebrating yet, though.
White House spokesman Josh Earnest said:White House spokesman Josh Earnest said:
“We are pleased to see that Greece has taken the step of putting forward a specific proposal, but it’s one that their creditors will have to evaluate.”“We are pleased to see that Greece has taken the step of putting forward a specific proposal, but it’s one that their creditors will have to evaluate.”
7.14pm BST19:147.14pm BST19:14
Former finance minister Yanis Varoufakis has been spied on a boat, heading away from Athens (reminder, he’s already showed support for the government’s proposal).Former finance minister Yanis Varoufakis has been spied on a boat, heading away from Athens (reminder, he’s already showed support for the government’s proposal).
Varoufakis spotted on a boat to his holiday home -PHOTOS - http://t.co/0LLHd2MJf6Varoufakis spotted on a boat to his holiday home -PHOTOS - http://t.co/0LLHd2MJf6
And Varoufakis hit back against criticism on social media ; he is spending time with his daughter (who lives in Australia)And Varoufakis hit back against criticism on social media ; he is spending time with his daughter (who lives in Australia)
Ευτυχώς υπάρχουν άνθρωποι που σέβονται τι σημαίνει να θέλω να περάσω το ΣΚ με την μικρή μου κόρη πριν επιστρέψει στην Αυστραλία όπου ζει...Ευτυχώς υπάρχουν άνθρωποι που σέβονται τι σημαίνει να θέλω να περάσω το ΣΚ με την μικρή μου κόρη πριν επιστρέψει στην Αυστραλία όπου ζει...
Perhaps Yanis could also explain to islanders why their low VAT rates are to be abolished, despite his best efforts...Perhaps Yanis could also explain to islanders why their low VAT rates are to be abolished, despite his best efforts...
Updated at 7.36pm BSTUpdated at 7.36pm BST
6.53pm BST18:536.53pm BST18:53
The actual rally in Athens looks quite peaceful:The actual rally in Athens looks quite peaceful:
From Communist-backed rally outside parliament #Greece pic.twitter.com/44ukS1tfQpFrom Communist-backed rally outside parliament #Greece pic.twitter.com/44ukS1tfQp
And well-attended:And well-attended:
Communist rally outside #Greece parliament, from BBC position. 1st time I saw this from here was June 2011 #dejavu pic.twitter.com/2D44FsIHPxCommunist rally outside #Greece parliament, from BBC position. 1st time I saw this from here was June 2011 #dejavu pic.twitter.com/2D44FsIHPx
6.43pm BST18:436.43pm BST18:43
Riot police blocking Antarsya rally in Athens @MakisSinodinos: Μπροστα απο τη παλαιά Βουλη για τη πορεια της ΑΝΤΑΡΣΥΑ pic.twitter.com/XrwiMkMRyrRiot police blocking Antarsya rally in Athens @MakisSinodinos: Μπροστα απο τη παλαιά Βουλη για τη πορεια της ΑΝΤΑΡΣΥΑ pic.twitter.com/XrwiMkMRyr
6.42pm BST18:426.42pm BST18:42
Riot police have scuffled with protesters at tonight’s anti-austerity rally in central Athens:Riot police have scuffled with protesters at tonight’s anti-austerity rally in central Athens:
6.31pm BST18:316.31pm BST18:31
Left Platform's endorsement means Tsipras stays on and implements potential agreement. Now it's up to Tsakalotos to convince the Eurogroup.Left Platform's endorsement means Tsipras stays on and implements potential agreement. Now it's up to Tsakalotos to convince the Eurogroup.
6.29pm BST18:296.29pm BST18:29
Greek media are reporting that the Left Platform of Syriza will support the reform plan in tonight’s vote, despite their misgivings over piling fresh austerity on Greece.Greek media are reporting that the Left Platform of Syriza will support the reform plan in tonight’s vote, despite their misgivings over piling fresh austerity on Greece.
That raises the chances that Tsipras gets the deal though, without losing his own majority:That raises the chances that Tsipras gets the deal though, without losing his own majority:
Obstacle 1, cleared. Now to the weekend and the creditors. https://t.co/Gv7zF8qn3OObstacle 1, cleared. Now to the weekend and the creditors. https://t.co/Gv7zF8qn3O
6.21pm BST18:216.21pm BST18:21
Protest dog joins the Athens "no" rally at #syntagma pic.twitter.com/rk7VqVL3MiProtest dog joins the Athens "no" rally at #syntagma pic.twitter.com/rk7VqVL3Mi
6.18pm BST18:186.18pm BST18:18
More on the rally, from Emma Graham-Harrison in Athens:More on the rally, from Emma Graham-Harrison in Athens:
Hundreds of marchers at a “no” rally, many carrying the flag of communist trade union PAME are marching though Syntagma square in front of parliament.Hundreds of marchers at a “no” rally, many carrying the flag of communist trade union PAME are marching though Syntagma square in front of parliament.
“They took the no and made it a yes” said protestor Giorgos Tsolakas, 34.“They took the no and made it a yes” said protestor Giorgos Tsolakas, 34.
“I don’t support Tsipras, I support the no, because I believe there is no future for us, the youth and workers”“I don’t support Tsipras, I support the no, because I believe there is no future for us, the youth and workers”
Protest dog joins the Athens "no" rally at #syntagma pic.twitter.com/rk7VqVL3MiProtest dog joins the Athens "no" rally at #syntagma pic.twitter.com/rk7VqVL3Mi
Updated at 6.21pm BSTUpdated at 6.21pm BST
6.15pm BST18:156.15pm BST18:15
Protests in AthensProtests in Athens
Meanwhile an anti-austerity rally has been taking place in Athens, as parliament debates the new Greek proposals to its creditors.Meanwhile an anti-austerity rally has been taking place in Athens, as parliament debates the new Greek proposals to its creditors.
Updated at 6.57pm BSTUpdated at 6.57pm BST
5.13pm BST17:135.13pm BST17:13
There are few red lines in the quest to keep Greece in the eurozone for years to come, but nominal debt reduction is one of them, according to Slovakian finance minister Peter Kazimir .There are few red lines in the quest to keep Greece in the eurozone for years to come, but nominal debt reduction is one of them, according to Slovakian finance minister Peter Kazimir .
Writing in the Financial Times (£) he said his government’s preference was not to eject any country from the eurozone.Writing in the Financial Times (£) he said his government’s preference was not to eject any country from the eurozone.
And he warned of two dangers in the background: “protracted chattering and political bickering without reforming action” and, even after resolving the current crisis, how to reinvent the European project to make sure the same problems do not recur.And he warned of two dangers in the background: “protracted chattering and political bickering without reforming action” and, even after resolving the current crisis, how to reinvent the European project to make sure the same problems do not recur.
5.00pm BST17:005.00pm BST17:00
European markets jump on Greek hopesEuropean markets jump on Greek hopes
Stock markets have moved sharply higher on optimism that Greece’s new proposals can form the basis of a deal with its creditors to avoid the country being ejected from the eurozone:Stock markets have moved sharply higher on optimism that Greece’s new proposals can form the basis of a deal with its creditors to avoid the country being ejected from the eurozone:
Meanwhile on Wall Street the Dow Jones Industrial Average is currently 1.28% or 224 points higher.Meanwhile on Wall Street the Dow Jones Industrial Average is currently 1.28% or 224 points higher.
On the bond markets, Italian, Spanish and Portuguese yields fell back between 4 and 7 basis points. Greek ten year yields fell 5 percentage points while the two year dropped 25 basis points.On the bond markets, Italian, Spanish and Portuguese yields fell back between 4 and 7 basis points. Greek ten year yields fell 5 percentage points while the two year dropped 25 basis points.
4.46pm BST16:464.46pm BST16:46
More from Tsakalotos courtesy of Nick Malkoutzix, deputy editor of Greek daily Kathimerini:More from Tsakalotos courtesy of Nick Malkoutzix, deputy editor of Greek daily Kathimerini:
Tsakalotos says four "legs" to programme: Fiscal, reforms, investment (Juncker) & debt relief #Greece #euroTsakalotos says four "legs" to programme: Fiscal, reforms, investment (Juncker) & debt relief #Greece #euro
Tsakalotos suggests that proposal for ESM-ECB debt swap will go ahead as part of third programme #Greece #euroTsakalotos suggests that proposal for ESM-ECB debt swap will go ahead as part of third programme #Greece #euro
Tsakalotos says there as "grey areas" that still have to be negotiated, such as monitoring of programme #Greece #euroTsakalotos says there as "grey areas" that still have to be negotiated, such as monitoring of programme #Greece #euro
Tsakalotos urging MPs to evaluate programme as a "whole," says it is in the spirit of Monday's agreement between party leaders #Greece #euroTsakalotos urging MPs to evaluate programme as a "whole," says it is in the spirit of Monday's agreement between party leaders #Greece #euro
Tsakalotos also said the European Central Bank exerted pressure on the eurozone countries to find a solution to the crisis in the last month (quote from Reuters).Tsakalotos also said the European Central Bank exerted pressure on the eurozone countries to find a solution to the crisis in the last month (quote from Reuters).
4.38pm BST16:384.38pm BST16:38
Greek FinMin Tsakalotos: Greek capital controls can be quickly reversedGreek FinMin Tsakalotos: Greek capital controls can be quickly reversed
4.34pm BST16:344.34pm BST16:34
Here is Greek finance minister Euclid Tsakalotos addressing parliament now:Here is Greek finance minister Euclid Tsakalotos addressing parliament now:
4.29pm BST16:294.29pm BST16:29
Greek banks could need up to €14bn fresh capital - reportGreek banks could need up to €14bn fresh capital - report
Greek banks have a cushion of around €750m, enough to last until Monday night, a senior Greek banker has told Reuters.Greek banks have a cushion of around €750m, enough to last until Monday night, a senior Greek banker has told Reuters.
But they will need €10bn to €14bn of fresh capital to keep them afloat, the banker told Reuters, even if a deal is reached with the country’s creditors over the weekend.But they will need €10bn to €14bn of fresh capital to keep them afloat, the banker told Reuters, even if a deal is reached with the country’s creditors over the weekend.
Earlier Moody’s had suggested the banks could run out of deposits by Sunday. The ratings agency said:Earlier Moody’s had suggested the banks could run out of deposits by Sunday. The ratings agency said:
Bank deposits could run out by Sunday because of outflows. With emergency liquidity assistance from the Eurosystem frozen at €89 billion, we estimate that Greek banks have limited headroom to deal with daily deposit outflows (estimated at between €100-150 million) and will likely exhaust their liquidity resources in the coming days.Bank deposits could run out by Sunday because of outflows. With emergency liquidity assistance from the Eurosystem frozen at €89 billion, we estimate that Greek banks have limited headroom to deal with daily deposit outflows (estimated at between €100-150 million) and will likely exhaust their liquidity resources in the coming days.
Policymakers from the European Central Bank have also hinted that, in the absence of any agreement by Sunday, the ECB may curtail ELA, rather than just keeping it at the current level.Policymakers from the European Central Bank have also hinted that, in the absence of any agreement by Sunday, the ECB may curtail ELA, rather than just keeping it at the current level.
We expect banks’ asset quality to deteriorate significantly and for the banks to require recapitalisation, with or without a third bailout.We expect banks’ asset quality to deteriorate significantly and for the banks to require recapitalisation, with or without a third bailout.
And even when the banks re-open capital controls could still be kept in place:And even when the banks re-open capital controls could still be kept in place:
.@OxfordEconomics on Greece: "capital controls are almost certainly here to stay for months, if not years"..@OxfordEconomics on Greece: "capital controls are almost certainly here to stay for months, if not years".
Updated at 6.23pm BSTUpdated at 6.23pm BST
4.20pm BST16:204.20pm BST16:20
So it could all get very tight:So it could all get very tight:
#Greece gov't in risk of losing parl majority. They can afford up to 12 No votes. It looks like No votes are now between 6 and 8.#Greece gov't in risk of losing parl majority. They can afford up to 12 No votes. It looks like No votes are now between 6 and 8.
4.04pm BST16:044.04pm BST16:04
However:However:
Syriza MP @rachelmakri announced Parliament that she will vote against the government's reform proposal. #Greece pic.twitter.com/gUmho4kA34Syriza MP @rachelmakri announced Parliament that she will vote against the government's reform proposal. #Greece pic.twitter.com/gUmho4kA34
4.01pm BST16:014.01pm BST16:01
Varoufakis supports new proposalsVaroufakis supports new proposals
Yanis Varoufakis may not be in parliament for the vote but he has shown his support for his successor Euclid Tsakalotos in tomorrow’s Eurogroup meeting:Yanis Varoufakis may not be in parliament for the vote but he has shown his support for his successor Euclid Tsakalotos in tomorrow’s Eurogroup meeting:
Αύριο ο Ευκλείδης αξίζει την στήριξη όλων μας. Την δική μου την έχει στο ακέραιο. Μετά θα αξιολογήσουμε το αποτέλεσμα pic.twitter.com/yOUhhP8hROΑύριο ο Ευκλείδης αξίζει την στήριξη όλων μας. Την δική μου την έχει στο ακέραιο. Μετά θα αξιολογήσουμε το αποτέλεσμα pic.twitter.com/yOUhhP8hRO
Which seems to roughly translate asWhich seems to roughly translate as
Tomorrow Euclid deserves the support of us all. My own has in full. Then we will evaluate the effect.Tomorrow Euclid deserves the support of us all. My own has in full. Then we will evaluate the effect.
#Varoufakis says he votes in favour of Greek proposal in letter to House Speaker Konstantopoulou https://t.co/QZuCfx4ZKa#Varoufakis says he votes in favour of Greek proposal in letter to House Speaker Konstantopoulou https://t.co/QZuCfx4ZKa
Updated at 7.26pm BSTUpdated at 7.26pm BST
3.47pm BST15:473.47pm BST15:47
The YouGov poll also shows that support in Germany for a Grexit is falling. A month ago 59% of Germans wanted Greece to leave the eurozone but that number has now fallen below 50% for the first time since February, and opposition is at a high of 37%.The YouGov poll also shows that support in Germany for a Grexit is falling. A month ago 59% of Germans wanted Greece to leave the eurozone but that number has now fallen below 50% for the first time since February, and opposition is at a high of 37%.
The full results are here:The full results are here:
Greece: Germans and Finns back a hard line, but support for Grexit wanesGreece: Germans and Finns back a hard line, but support for Grexit wanes
3.44pm BST15:443.44pm BST15:44
Some interesting results from a YouGov poll on attitudes towards Greece, which shows the British and French much more sympathetic than Germany or the Nordic states.Some interesting results from a YouGov poll on attitudes towards Greece, which shows the British and French much more sympathetic than Germany or the Nordic states.
3.38pm BST15:383.38pm BST15:38
Lithuanian president Dalia Grybauskaite is sounding a cautious note.Lithuanian president Dalia Grybauskaite is sounding a cautious note.
Reuters reports her comments to reporters:Reuters reports her comments to reporters:
It is probably too early to evaluate [the proposals] because they are based on old information and it seems those proposals will really not be enough.It is probably too early to evaluate [the proposals] because they are based on old information and it seems those proposals will really not be enough.
We take the document of proposals as [indicating] Greece’s wish to go back to the negotiating table. It’s too early to start guessing how the negotiations will end.We take the document of proposals as [indicating] Greece’s wish to go back to the negotiating table. It’s too early to start guessing how the negotiations will end.
3.27pm BST15:273.27pm BST15:27
Here’s the formal agenda for Saturday’s Eurogroup meeting:Here’s the formal agenda for Saturday’s Eurogroup meeting:
The Eurogroup will discuss the recent request by the Greek authorities for financial assistance from the European Stability Mechanism (ESM) and their new proposals for a reform agenda.The Eurogroup will discuss the recent request by the Greek authorities for financial assistance from the European Stability Mechanism (ESM) and their new proposals for a reform agenda.
The European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF) will present their assessment of risk to financial stability in the euro area, Greece’s financing needs and the sustainability of its public debt.The European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF) will present their assessment of risk to financial stability in the euro area, Greece’s financing needs and the sustainability of its public debt.
Based on this assessment ministers will exchange views on whether there is a sufficient basis to start formal negotiations on a new financial assistance programme for Greece.Based on this assessment ministers will exchange views on whether there is a sufficient basis to start formal negotiations on a new financial assistance programme for Greece.
ESM financial assistance programmes are negotiated by the Commission, in liaison with the ECB, on the basis of a mandate by the Eurogroup. When possible, active participation of the IMF is sought.ESM financial assistance programmes are negotiated by the Commission, in liaison with the ECB, on the basis of a mandate by the Eurogroup. When possible, active participation of the IMF is sought.
3.19pm BST15:193.19pm BST15:19
Here’s a nice chart showing the looming repayments which face Greece. The ECB looks particularly looming:Here’s a nice chart showing the looming repayments which face Greece. The ECB looks particularly looming:
Here are all the key dates for Greece http://t.co/n1OPoqtM4m pic.twitter.com/uyuLEXOBbFHere are all the key dates for Greece http://t.co/n1OPoqtM4m pic.twitter.com/uyuLEXOBbF
3.16pm BST15:163.16pm BST15:16
Guy Verhofstadt, the leader of the liberal group in the European Parliament who laid into Alexis Tsipras on Wednesday and saw his attack go viral, seems a little more consiliatory now. He tweeted earlier:Guy Verhofstadt, the leader of the liberal group in the European Parliament who laid into Alexis Tsipras on Wednesday and saw his attack go viral, seems a little more consiliatory now. He tweeted earlier:
New Tsipras' plan contains improvement in the fight against corruption & privileges of different groups #GreekcrisisNew Tsipras' plan contains improvement in the fight against corruption & privileges of different groups #Greekcrisis
Proposals #Greece can lead to deal this weekend. But the real work starts now, towards integration of euro area & a structural debt solutionProposals #Greece can lead to deal this weekend. But the real work starts now, towards integration of euro area & a structural debt solution
Greece will have to deliver, but Europe as well ! By creating a treasury & debt management system for a sustainable solution for allGreece will have to deliver, but Europe as well ! By creating a treasury & debt management system for a sustainable solution for all
We have created in #Europe a currency Union without a political Union. This is simply not sustainable.We have created in #Europe a currency Union without a political Union. This is simply not sustainable.
And it’s not just France that deserves some credit if a deal is done, apparently:And it’s not just France that deserves some credit if a deal is done, apparently:
If going viral leads to solutions, we should try it more often in Europe http://t.co/NeMiNXbRta via @POLITICOEurope #GreekCrisisIf going viral leads to solutions, we should try it more often in Europe http://t.co/NeMiNXbRta via @POLITICOEurope #GreekCrisis
2.56pm BST14:562.56pm BST14:56
The US and Russia have both been voicing their views on the latest developments in Greece.The US and Russia have both been voicing their views on the latest developments in Greece.
US Treasury secretary Jack Lew said both sides needed to rebuild trust, but a deal did appear closer and the position was better than just a couple of days ago. He said it was critical Greece took the difficult steps necessary, including structural reform.US Treasury secretary Jack Lew said both sides needed to rebuild trust, but a deal did appear closer and the position was better than just a couple of days ago. He said it was critical Greece took the difficult steps necessary, including structural reform.
Meanwhile Russia’s president Putin said he hoped the crisis would be resolved soon, and confirmed once more that Greece had not asked for financial aid. Reuters reports:Meanwhile Russia’s president Putin said he hoped the crisis would be resolved soon, and confirmed once more that Greece had not asked for financial aid. Reuters reports:
Implying criticism of the European Union’s handling of the crisis, he asked at a news conference in the Russian city of Ufa where the EU had been when problems were accumulating in Greece.Implying criticism of the European Union’s handling of the crisis, he asked at a news conference in the Russian city of Ufa where the EU had been when problems were accumulating in Greece.
2.43pm BST14:432.43pm BST14:43
How do the latest set of Greek proposals differ from those on the table when negotiations were abandoned nearly two weeks ago? Here we take a look at the differences:How do the latest set of Greek proposals differ from those on the table when negotiations were abandoned nearly two weeks ago? Here we take a look at the differences:
Related: Greek debt crisis: What's in the proposals from Athens?Related: Greek debt crisis: What's in the proposals from Athens?
2.40pm BST14:402.40pm BST14:40
Yanis Varoufakis will apparently not be at today’s vote:Yanis Varoufakis will apparently not be at today’s vote:
Former FinMin #Varoufakis tweets he will not be present at parliament vote due to family reasons #GreeceFormer FinMin #Varoufakis tweets he will not be present at parliament vote due to family reasons #Greece
2.34pm BST14:342.34pm BST14:34
If a deal to keep Greece in the eurozone fails, and the country leaves the single currency, it would need up to €33bn in transitional funding to help support its economy, according to Open Europe.If a deal to keep Greece in the eurozone fails, and the country leaves the single currency, it would need up to €33bn in transitional funding to help support its economy, according to Open Europe.
Up to €1.84bn of this could come from the UK, which would not go down well with the UK’s eurosceptics ahead of a referendum.Up to €1.84bn of this could come from the UK, which would not go down well with the UK’s eurosceptics ahead of a referendum.
Open Europe’s Raoul Ruparel writes:Open Europe’s Raoul Ruparel writes:
Open Europe estimates that, in terms of bare essentials, Greece could need between €18bn and €33bn in transitional funding to help support its economy after Grexit. This would cover things such as certain debt payments, some deficit funding and money to bolster reserves to aid in managing the new currency. It does not include the cost of bank recapitalisation which might be managed via nationalisation. If money was needed for this the cost could jump by tens of billions. Of course, there would be much wider costs to Grexit to both the Eurozone and Greece in terms of economic decline, contagion and Greek default on direct Eurozone exposures.Open Europe estimates that, in terms of bare essentials, Greece could need between €18bn and €33bn in transitional funding to help support its economy after Grexit. This would cover things such as certain debt payments, some deficit funding and money to bolster reserves to aid in managing the new currency. It does not include the cost of bank recapitalisation which might be managed via nationalisation. If money was needed for this the cost could jump by tens of billions. Of course, there would be much wider costs to Grexit to both the Eurozone and Greece in terms of economic decline, contagion and Greek default on direct Eurozone exposures.
This money is unlikely to be provided entirely by the Eurozone. Open Europe expects it could be split equally between the Eurozone, the EU and the IMF. The Eurozone could provide funds bilaterally while the EU would utilise either the Balance of Payments assistance facility or the European Financial Stabilisation Mechanism. From the UK perspective this could mean underwriting shares of between €1bn and €1.84bn. While the cost of transitional funding should be predominantly shouldered by the Eurozone, there is a geopolitical and humanitarian case on the part of other EU members for helping stabilise Greece and keep it inside the EU. Furthermore, with a default and devaluation there might be more hope of these loans being repaid by Greece.This money is unlikely to be provided entirely by the Eurozone. Open Europe expects it could be split equally between the Eurozone, the EU and the IMF. The Eurozone could provide funds bilaterally while the EU would utilise either the Balance of Payments assistance facility or the European Financial Stabilisation Mechanism. From the UK perspective this could mean underwriting shares of between €1bn and €1.84bn. While the cost of transitional funding should be predominantly shouldered by the Eurozone, there is a geopolitical and humanitarian case on the part of other EU members for helping stabilise Greece and keep it inside the EU. Furthermore, with a default and devaluation there might be more hope of these loans being repaid by Greece.
The full report is here:The full report is here:
How much financial help might Greece need under Grexit?How much financial help might Greece need under Grexit?
2.32pm BST14:322.32pm BST14:32
Summary: Tsipras seeks support, but has he done enough?Summary: Tsipras seeks support, but has he done enough?
A quick recap.A quick recap.
Greece is inching closer to agreeing a third bailout deal that would avert bankruptcy and preserve its place in the eurozone, but it’s not a done deal yet.Greece is inching closer to agreeing a third bailout deal that would avert bankruptcy and preserve its place in the eurozone, but it’s not a done deal yet.
Alexis Tsipras has urged his party to support the €13bn of austerity measures proposed late last night, which broadly match the policies which he refused to accept in the protracted battle with creditors.Alexis Tsipras has urged his party to support the €13bn of austerity measures proposed late last night, which broadly match the policies which he refused to accept in the protracted battle with creditors.
The Greek prime minister told MPs that:The Greek prime minister told MPs that:
We are confronted with crucial decisions.We are confronted with crucial decisions.
“We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not given a mandate to take Greece out of the eurozone.“We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not given a mandate to take Greece out of the eurozone.
We are all in this together.”We are all in this together.”
Five MPs have said they will rebel, but the plan will be approved at a vote - probably late tonight - as opposition parties are supporting it.Five MPs have said they will rebel, but the plan will be approved at a vote - probably late tonight - as opposition parties are supporting it.
GREEK MAIN OPPOSITION NEW DEMOCRACY PARTY SAYS AUTHORISES PM TSIPRAS TO REACH A DEAL, TO KEEP COUNTRY IN EURO ZONE - RTRSGREEK MAIN OPPOSITION NEW DEMOCRACY PARTY SAYS AUTHORISES PM TSIPRAS TO REACH A DEAL, TO KEEP COUNTRY IN EURO ZONE - RTRS
The heads of Greece’s creditors have discussed the plan by phone, but no details of the call have leaked (yet).The heads of Greece’s creditors have discussed the plan by phone, but no details of the call have leaked (yet).
France has thrown its weight behind the plan -- reflecting its strong desire to keep Greece in the eurozone (and the fact French officials helped with the plan).France has thrown its weight behind the plan -- reflecting its strong desire to keep Greece in the eurozone (and the fact French officials helped with the plan).
But Slovakia’s finance minister has questioned whether Greece has delivered enough, while Latvia’s PM isn’t sure that their parliament would approve a bailout.But Slovakia’s finance minister has questioned whether Greece has delivered enough, while Latvia’s PM isn’t sure that their parliament would approve a bailout.
Angela Merkel faces a tough fight getting a deal through the Bundestag, says the joint CEO of the Berlin stock exchange.Angela Merkel faces a tough fight getting a deal through the Bundestag, says the joint CEO of the Berlin stock exchange.
And Michael Fuchs, deputy parliamentary floor leader of Merkel’s CDU party, has said it’s hard to trust the Greek proposal.And Michael Fuchs, deputy parliamentary floor leader of Merkel’s CDU party, has said it’s hard to trust the Greek proposal.
Tsipras also faces criticism for proposing measures which he spent months opposing:Tsipras also faces criticism for proposing measures which he spent months opposing:
Related: Tsipras rattled his sabre until it was blunt – and for what?Related: Tsipras rattled his sabre until it was blunt – and for what?
One Greek newspaper says the country has reached its ‘day of judgement’. Another hopes that the European Central Bank might offer more emergency liquidity, to allow its banks to reopen. Here’s our round-up.One Greek newspaper says the country has reached its ‘day of judgement’. Another hopes that the European Central Bank might offer more emergency liquidity, to allow its banks to reopen. Here’s our round-up.
Eurozone finance ministers will meet on Saturday to evaluate the proposal. That meeting will be crucial to deciding whether Greece gets a third bailout. If they give the thumbs down, then EU leaders will gather on Sunday to plan for Greece’s exit from the single currency.Eurozone finance ministers will meet on Saturday to evaluate the proposal. That meeting will be crucial to deciding whether Greece gets a third bailout. If they give the thumbs down, then EU leaders will gather on Sunday to plan for Greece’s exit from the single currency.
Over in Thessaloniki, young voters have told us they are still proud of last Sunday’s “No” vote, even though Tsipras now appears to be saying “Yes” to lenders.Over in Thessaloniki, young voters have told us they are still proud of last Sunday’s “No” vote, even though Tsipras now appears to be saying “Yes” to lenders.
Greek islands are facing up to the prospect of higher VAT rates, which could hurt tourism.Greek islands are facing up to the prospect of higher VAT rates, which could hurt tourism.
And European stock markets have continued to surge, as the chances of Greece leaving the single currency and default recede. France’s CAC has soared over 3%.And European stock markets have continued to surge, as the chances of Greece leaving the single currency and default recede. France’s CAC has soared over 3%.
Mike van Dulken, head of research at Accendo Markets, explains.Mike van Dulken, head of research at Accendo Markets, explains.
“Equities are handsomely positive this morning thanks to Greece delivering what appears to be a more promising set of reforms proposals required to unlock the €53.5bn bailout it needs to secure its future within the Eurozone.“Equities are handsomely positive this morning thanks to Greece delivering what appears to be a more promising set of reforms proposals required to unlock the €53.5bn bailout it needs to secure its future within the Eurozone.
A potential softening of neighbouring (read German) rejection on Greek debt relief after international pressure is also helping as is a second day of gains in China, reversing some of the recent rout.A potential softening of neighbouring (read German) rejection on Greek debt relief after international pressure is also helping as is a second day of gains in China, reversing some of the recent rout.
Updated at 2.39pm BSTUpdated at 2.39pm BST
2.32pm BST14:322.32pm BST14:32
The largest opposition party, New Democracy has declared that it ‘authorises” Alexis Tsipras to reach a deal to keep Greece in the euro.The largest opposition party, New Democracy has declared that it ‘authorises” Alexis Tsipras to reach a deal to keep Greece in the euro.
1/2 Niki Kerameus (New Democracy MP) "Now is the time to do everything possible to keep Greece within the Eurozone..." #greferendum #grexit1/2 Niki Kerameus (New Democracy MP) "Now is the time to do everything possible to keep Greece within the Eurozone..." #greferendum #grexit
2/2 Kerameus:"Now is not the time to discuss why Syriza went from promising 12bn in grants to proposing 12bn in austerity measures." #grexit2/2 Kerameus:"Now is not the time to discuss why Syriza went from promising 12bn in grants to proposing 12bn in austerity measures." #grexit
I suspect *that* time will come soon enough....I suspect *that* time will come soon enough....
Updated at 2.32pm BSTUpdated at 2.32pm BST
2.27pm BST14:272.27pm BST14:27
The French ambassador to the US has no doubts about where the credit should go if a compromise is reached by the two sides:The French ambassador to the US has no doubts about where the credit should go if a compromise is reached by the two sides:
#Greece. France has bern working quietly, these last days, to bridge the differences between both sides.#Greece. France has bern working quietly, these last days, to bridge the differences between both sides.
2.23pm BST14:232.23pm BST14:23
Meanwhile Fitch has said an eventual exit from the eurozone is now the probable outcome for Greece:Meanwhile Fitch has said an eventual exit from the eurozone is now the probable outcome for Greece:
[The ratings agency’s global head of sovereigns] James McCormack, says the referendum’s ‘no’ vote was a defining moment, providing a substantial boost to the position of the Syriza-led government in its negotiations with creditors. However, Greece may have miscalculated:[The ratings agency’s global head of sovereigns] James McCormack, says the referendum’s ‘no’ vote was a defining moment, providing a substantial boost to the position of the Syriza-led government in its negotiations with creditors. However, Greece may have miscalculated:
“Greece’s strong argument in favour of greater accommodation on the part of creditors faces several hurdles that are likely to prove collectively insurmountable. The referendum might have tipped the balance of how other eurozone countries weigh the risks of Greece’s continued membership in the common currency area versus its exit, but this may become clear only once the history is written.”“Greece’s strong argument in favour of greater accommodation on the part of creditors faces several hurdles that are likely to prove collectively insurmountable. The referendum might have tipped the balance of how other eurozone countries weigh the risks of Greece’s continued membership in the common currency area versus its exit, but this may become clear only once the history is written.”
2.18pm BST14:182.18pm BST14:18
Greek’s banks could run out of deposits by Sunday, according to ratings agency Moody’s.Greek’s banks could run out of deposits by Sunday, according to ratings agency Moody’s.
Moody's on Greece: "Bank deposits could run out by Sunday because of outflows. Total Eurosystem funding exceeds sector’s private deposits."Moody's on Greece: "Bank deposits could run out by Sunday because of outflows. Total Eurosystem funding exceeds sector’s private deposits."
Meanwhile Reuters is reporting that the European Central Bank is likely to hold a telephone conference on Monday to discuss emergency liquidity assistance to Greece’s banks.Meanwhile Reuters is reporting that the European Central Bank is likely to hold a telephone conference on Monday to discuss emergency liquidity assistance to Greece’s banks.
2.11pm BST14:112.11pm BST14:11
Eurogroup president Jeroen Dijsselbloem has said he is waiting for a technical analysis of the latest Greek proposals before commenting on its content (courtesy Reuters).Eurogroup president Jeroen Dijsselbloem has said he is waiting for a technical analysis of the latest Greek proposals before commenting on its content (courtesy Reuters).
*DIJSSELBLOEM SAYS INSTITUTIONS TO REPORT ON PROPOSALS TONIGHT*DIJSSELBLOEM SAYS INSTITUTIONS TO REPORT ON PROPOSALS TONIGHT
1.55pm BST13:551.55pm BST13:55
Busy, busy as the last ditch talks continue. Here’s the Finnish finance minister:Busy, busy as the last ditch talks continue. Here’s the Finnish finance minister:
Morning and early afternoon on the phone, non-stop. #Eurogroup in Brussels tomorrow.Morning and early afternoon on the phone, non-stop. #Eurogroup in Brussels tomorrow.
Non-stop? Still enough time to tweet, it seems..Non-stop? Still enough time to tweet, it seems..
1.49pm BST13:491.49pm BST13:49
Angela Merkel faces 'huge' challenge over GreeceAngela Merkel faces 'huge' challenge over Greece
Kate ConnollyKate Connolly
Artur Fischer, the joint CEO of the Berlin Stock Exchange has just told Kate Connolly in Berlin about the huge domestic consequences a third bailout might have for Merkel.Artur Fischer, the joint CEO of the Berlin Stock Exchange has just told Kate Connolly in Berlin about the huge domestic consequences a third bailout might have for Merkel.
“This is the toughest time in her chancellorship so far. Can she resist the voices of opposition within her own party to push through a third bailout in the Bundestag that most of them are against?” he asked.“This is the toughest time in her chancellorship so far. Can she resist the voices of opposition within her own party to push through a third bailout in the Bundestag that most of them are against?” he asked.
“She is facing huge internal difficulties that have the potential to end her chancellorship.”“She is facing huge internal difficulties that have the potential to end her chancellorship.”
He told The Guardian that no one involved in politics or finance in Berlin was taking a summer break “or else they’re not going far so that they can get back quickly,” he said, “because no one expects this to be over soon.”He told The Guardian that no one involved in politics or finance in Berlin was taking a summer break “or else they’re not going far so that they can get back quickly,” he said, “because no one expects this to be over soon.”
If a bailout were to be on the cards, it is likely the Bundestag would vote on it early next week, he said.If a bailout were to be on the cards, it is likely the Bundestag would vote on it early next week, he said.
“But then it has to be agreed on amongst all the parties and we’re looking at another two weeks”.“But then it has to be agreed on amongst all the parties and we’re looking at another two weeks”.
He added that the Greek government’s “willy nilly” attitude to agreeing to new proposals, including setting the referendum, had set the country back even further, citing the number of Greek businesses that have and will go to the wall as a result of the banks having been closed. “The Greek government has destroyed a huge amount of value over the past few months, which has not been factored in.””In my mind it has lost all its credibility,” he said.He added that the Greek government’s “willy nilly” attitude to agreeing to new proposals, including setting the referendum, had set the country back even further, citing the number of Greek businesses that have and will go to the wall as a result of the banks having been closed. “The Greek government has destroyed a huge amount of value over the past few months, which has not been factored in.””In my mind it has lost all its credibility,” he said.
Germans, Fischer added, have been willing to back previous bailouts for Greece, but had the feeling that the money had gone no where.Germans, Fischer added, have been willing to back previous bailouts for Greece, but had the feeling that the money had gone no where.
“There are many cultural differences at play here, including the fact that we Germans hate uncertainty. We invent a DIN Norm (or standard) for everything, including chairs, to ensure they will fit under tables, we like that certainty so much. That love of certainty means I always turn up at a meeting on time. So we don’t like throwing money at something not knowing where it’s going.”“There are many cultural differences at play here, including the fact that we Germans hate uncertainty. We invent a DIN Norm (or standard) for everything, including chairs, to ensure they will fit under tables, we like that certainty so much. That love of certainty means I always turn up at a meeting on time. So we don’t like throwing money at something not knowing where it’s going.”
1.41pm BST13:411.41pm BST13:41
And here are the five holdouts:And here are the five holdouts:
These are the #Syriza MPs who say "no" to the proposal -Leoutsakos, Ntavanelos, Papadogianni, Lapavitsas, Petrakos- http://t.co/DLa48qIpucThese are the #Syriza MPs who say "no" to the proposal -Leoutsakos, Ntavanelos, Papadogianni, Lapavitsas, Petrakos- http://t.co/DLa48qIpuc
1.40pm BST13:401.40pm BST13:40
Greece’s new austerity plan is being discussed at committee level now, and some MPs are unhappy:Greece’s new austerity plan is being discussed at committee level now, and some MPs are unhappy:
* Five hardline leftists in Greek ruling syriza say Greek Eurozone exit preferable to deal with austerity and without debt relief - RTRS* Five hardline leftists in Greek ruling syriza say Greek Eurozone exit preferable to deal with austerity and without debt relief - RTRS
There are around 40 MPs in the Left Platform, the more radical left-wing of Syriza, so only losing 5 votes would be quite a triumph for Tsipras....There are around 40 MPs in the Left Platform, the more radical left-wing of Syriza, so only losing 5 votes would be quite a triumph for Tsipras....
Other MPs have warned that Greece isn’t in a position to rupture from Europe.Other MPs have warned that Greece isn’t in a position to rupture from Europe.
SYRIZA MP Mitropoulos "There have been mistakes on all sides in negotiations. We cannot manage a Grexit" #Greece #euroSYRIZA MP Mitropoulos "There have been mistakes on all sides in negotiations. We cannot manage a Grexit" #Greece #euro
1.18pm BST13:181.18pm BST13:18
Kate ConnollyKate Connolly
There is an interesting take in today’s Bild as to why US President Barack Obama is taking such an interest in the Greek crisis, apparently calling Merkel and Tsipras on a regular basis, out of fear of the impact on the global economy and even global security that a Grexit might have, writes Kate Connolly in Berlin.There is an interesting take in today’s Bild as to why US President Barack Obama is taking such an interest in the Greek crisis, apparently calling Merkel and Tsipras on a regular basis, out of fear of the impact on the global economy and even global security that a Grexit might have, writes Kate Connolly in Berlin.
The German tabloid quotes a top German diplomat who explains why the US is so flummoxed over why Greece - which after all has an economy about the size of Tennessee’s - is considered such a headache in Europe.The German tabloid quotes a top German diplomat who explains why the US is so flummoxed over why Greece - which after all has an economy about the size of Tennessee’s - is considered such a headache in Europe.
“Viewed from Washington, it’s to do with keeping on feeding a cute little animal with peanuts,” the diplomat said.“Viewed from Washington, it’s to do with keeping on feeding a cute little animal with peanuts,” the diplomat said.
It goes on to quote German finance minister Wolfgang Schäuble, who said yesterday that:It goes on to quote German finance minister Wolfgang Schäuble, who said yesterday that:
“I offered to my friend Jack Lew (his US counterpart) that we would take Puerto Rico into the Eurozone, if the USA took Greece into the Dollar Union. He thought I was joking”.“I offered to my friend Jack Lew (his US counterpart) that we would take Puerto Rico into the Eurozone, if the USA took Greece into the Dollar Union. He thought I was joking”.
Former Germany ambassador to Washington, Wolfgang Ischinger told the paper:Former Germany ambassador to Washington, Wolfgang Ischinger told the paper:
“It’s easy for President Obama to advise us to save Greece. It’s the Europeans who have to bear the costs, not the USA.”“It’s easy for President Obama to advise us to save Greece. It’s the Europeans who have to bear the costs, not the USA.”
1.16pm BST13:161.16pm BST13:16
Debt campaigners have been reminding Germany that Greece needs meaningful debt relief:Debt campaigners have been reminding Germany that Greece needs meaningful debt relief:
Last night at German Embassy in London we sent the message to Angela Merkel that @George_Osborne @David_Cameron won't pic.twitter.com/Y0WjjHpCOhLast night at German Embassy in London we sent the message to Angela Merkel that @George_Osborne @David_Cameron won't pic.twitter.com/Y0WjjHpCOh
1.09pm BST13:091.09pm BST13:09
The IMF’s outgoing chief economist, Olivier Blanchard, has published a defence of the Fund’s role in the Greek bailout saga.The IMF’s outgoing chief economist, Olivier Blanchard, has published a defence of the Fund’s role in the Greek bailout saga.
It includes a pop at the eurozone for ignoring the need for Greek debt relief:It includes a pop at the eurozone for ignoring the need for Greek debt relief:
Blanchard gives rather less attention to ghastly forecasting record of Greece’s lenders, arguing:Blanchard gives rather less attention to ghastly forecasting record of Greece’s lenders, arguing:
In a stunning swan song IMF’s Olivier Blanchard nails Eurozone’s ghastly blunders http://t.co/W27kALK5oT pic.twitter.com/w9bQMvsxXzIn a stunning swan song IMF’s Olivier Blanchard nails Eurozone’s ghastly blunders http://t.co/W27kALK5oT pic.twitter.com/w9bQMvsxXz
12.45pm BST12:4512.45pm BST12:45
Slovakia’s finance minister isn’t convinced (yet, anyway) that Greece’s reforms plan is solid enough to deliver a deal:Slovakia’s finance minister isn’t convinced (yet, anyway) that Greece’s reforms plan is solid enough to deliver a deal:
It seems we have progress on #Greece. It's still not clear whether this will be enough and no further frontloading will be needed #EurozoneIt seems we have progress on #Greece. It's still not clear whether this will be enough and no further frontloading will be needed #Eurozone
Peter Kažimír also has misgivings over Athens’ ability to deliver these proposals:Peter Kažimír also has misgivings over Athens’ ability to deliver these proposals:
Following latest developments, listening to #Greece govt officials one can wonder how quickly can caterpillar turn into butterfly #EurozoneFollowing latest developments, listening to #Greece govt officials one can wonder how quickly can caterpillar turn into butterfly #Eurozone
12.43pm BST12:4312.43pm BST12:43
Latvia could struggle to back Greek dealLatvia could struggle to back Greek deal
Kate ConnollyKate Connolly
The view from Latvia has been expressed by prime minister Laimdota Straujuma, speaking on state broadcaster Deutschlankfunk (dlf.de) this morning.The view from Latvia has been expressed by prime minister Laimdota Straujuma, speaking on state broadcaster Deutschlankfunk (dlf.de) this morning.
Straujuma said that the Latvian parliament would have to vote on any new bailout. It would be the first time it had been directly involved, as during bailouts 1 and 2, the country was not yet part of the Euro. She told DLF she would have difficulty persuading her parliament to support such a move.Straujuma said that the Latvian parliament would have to vote on any new bailout. It would be the first time it had been directly involved, as during bailouts 1 and 2, the country was not yet part of the Euro. She told DLF she would have difficulty persuading her parliament to support such a move.
“It will be very hard for me to persuade the parliament. And for the parliament it will be difficult to vote for it, because the average Pension in Latvia is considerably less than in Greece, and if you were to ask the Latvians today whether they are willing to lend money to Greece, you can probably guess what their answer would be.”“It will be very hard for me to persuade the parliament. And for the parliament it will be difficult to vote for it, because the average Pension in Latvia is considerably less than in Greece, and if you were to ask the Latvians today whether they are willing to lend money to Greece, you can probably guess what their answer would be.”
Straujuma said that discussions with her counterparts in the other Baltic states of Estonia and Lithuania - all of whom have gone through extensive periods of austerity and reform implementation - had shown they were of the same opinion.Straujuma said that discussions with her counterparts in the other Baltic states of Estonia and Lithuania - all of whom have gone through extensive periods of austerity and reform implementation - had shown they were of the same opinion.
“At the moment I see no reason for Latvia to give money to Greece,” Straujuma said, adding:“At the moment I see no reason for Latvia to give money to Greece,” Straujuma said, adding:
“Humanitarian aid is another matter. If money is needed for Greek hospitals or for medicines, the Latvians will help. Greece is an EU member, but it’s the Greek government that is responsible for what happens”.“Humanitarian aid is another matter. If money is needed for Greek hospitals or for medicines, the Latvians will help. Greece is an EU member, but it’s the Greek government that is responsible for what happens”.
Updated at 2.39pm BSTUpdated at 2.39pm BST
12.32pm BST12:3212.32pm BST12:32
In the Czech Republic, there are deep-seated anxieties that the Greek crisis could unleash old Cold War tensions.In the Czech Republic, there are deep-seated anxieties that the Greek crisis could unleash old Cold War tensions.
Writing in the leading financial daily, Hospodarsky Noviny, leading commentator Daniel Anyz explains the geopolitical dimensions of the crisis, and the consequences of Grexit.Writing in the leading financial daily, Hospodarsky Noviny, leading commentator Daniel Anyz explains the geopolitical dimensions of the crisis, and the consequences of Grexit.
“(Russian president Vladimir) Putin needs very little imagination to consider what an exit of Greece from the Eurzone would trigger. The feeling of bitterness towards Europe would deepen and Greece would move a step closer towards Russia.”“(Russian president Vladimir) Putin needs very little imagination to consider what an exit of Greece from the Eurzone would trigger. The feeling of bitterness towards Europe would deepen and Greece would move a step closer towards Russia.”
Anyz says that Greece could alter its behaviour on the world stage, according to how the crisis is dealt with.Anyz says that Greece could alter its behaviour on the world stage, according to how the crisis is dealt with.
“Would Athens change its view on the sanctions against Russia? Would Greece continue to support Nato military operations? Would it still allow the military ships of its partner countries into its harbours? “A Grexit would play right into Putin’s hands. Greece would turn into an extremely problematic European partner with separatist tendencies. Then it’ll be even harder to find consensus in Nato on important decisions.”“Would Athens change its view on the sanctions against Russia? Would Greece continue to support Nato military operations? Would it still allow the military ships of its partner countries into its harbours? “A Grexit would play right into Putin’s hands. Greece would turn into an extremely problematic European partner with separatist tendencies. Then it’ll be even harder to find consensus in Nato on important decisions.”
More here: Grexit by Řecko přiblížil PutinoviMore here: Grexit by Řecko přiblížil Putinovi
12.25pm BST12:2512.25pm BST12:25
Back in Athens, Syriza MPs are arguing that Greece should hunker down, and live to fight another day.Back in Athens, Syriza MPs are arguing that Greece should hunker down, and live to fight another day.
#Greece LaborMin Skourletis: Current balance of power [in Eurozone] makes capitulation inevitable now. We'll reach our aims at a better time#Greece LaborMin Skourletis: Current balance of power [in Eurozone] makes capitulation inevitable now. We'll reach our aims at a better time
SYRIZA's #Lapavitsas: I was proved right. We cannot handle a Grexit. We need to be prepared, we will face it in the future #GreeceSYRIZA's #Lapavitsas: I was proved right. We cannot handle a Grexit. We need to be prepared, we will face it in the future #Greece
12.06pm BST12:0612.06pm BST12:06
Greek No voters still proud, despite austerity u-turnGreek No voters still proud, despite austerity u-turn
Angelique ChrisafisAngelique Chrisafis
Angelique Chrisafis has been speaking to young No voters in Thessaloniki about the latest bailout proposals:Angelique Chrisafis has been speaking to young No voters in Thessaloniki about the latest bailout proposals:
In Greece’s northern second city, where younger Greeks mainly voted No in Sunday’s referendum on a bail-out deal, many people in their 20s have come to see themselves as a lost generation whose adult lives have been dominated by austerity. With a youth unemployment rate in the city that has reached 65%, there are few job prospects and many face living with parents and relatives for years to come.In Greece’s northern second city, where younger Greeks mainly voted No in Sunday’s referendum on a bail-out deal, many people in their 20s have come to see themselves as a lost generation whose adult lives have been dominated by austerity. With a youth unemployment rate in the city that has reached 65%, there are few job prospects and many face living with parents and relatives for years to come.
Among some young No voters in the city this morning, there was a feeling that there was still a lot to play for and much bargaining to be done in Brussels before a deal shaped up. Many felt that now that Greeks’ voice had been heard with the No vote, any austerity measures — which many felt had always been inevitable — could be tempered by debt-relief in a more favourable package.Among some young No voters in the city this morning, there was a feeling that there was still a lot to play for and much bargaining to be done in Brussels before a deal shaped up. Many felt that now that Greeks’ voice had been heard with the No vote, any austerity measures — which many felt had always been inevitable — could be tempered by debt-relief in a more favourable package.
Christos, 27, who had a Masters degree in transport engineering, was standing at the bar of the coffee-shop where he had managed to get a job after graduating. He was lucky as many of his engineer friends were unemployed. But the coffee-shop’s trade has halved since the banks were shut and capital controls imposed.Christos, 27, who had a Masters degree in transport engineering, was standing at the bar of the coffee-shop where he had managed to get a job after graduating. He was lucky as many of his engineer friends were unemployed. But the coffee-shop’s trade has halved since the banks were shut and capital controls imposed.
He voted for Alexis Tsipras in January but didn’t vote in the referendum. But he said he now had faith in Tspiras’s negotiations and the new proposals were not a betrayal.He voted for Alexis Tsipras in January but didn’t vote in the referendum. But he said he now had faith in Tspiras’s negotiations and the new proposals were not a betrayal.
“I think everyone has always known that things were going to be very difficult now and in the coming years. The deal will be very difficult for us, but it’s probably the best solution. Better a deal than no deal. I think our only chance is to continue on our road in the eurozone.“I think everyone has always known that things were going to be very difficult now and in the coming years. The deal will be very difficult for us, but it’s probably the best solution. Better a deal than no deal. I think our only chance is to continue on our road in the eurozone.
The No vote was a way for Greeks to express their feelings to Europe, there’s a certain happiness that the No vote has been heard. And it seems there has been an understanding that more should be put on the table for Greece, in the form of debt relief. There has been progress.”The No vote was a way for Greeks to express their feelings to Europe, there’s a certain happiness that the No vote has been heard. And it seems there has been an understanding that more should be put on the table for Greece, in the form of debt relief. There has been progress.”
Valentine, 26, who runs a retro vintage clothing shop that sells clothes by the kilo, said:Valentine, 26, who runs a retro vintage clothing shop that sells clothes by the kilo, said:
“I’m so proud of the No vote, it will be remembered as a key moment in Greek history. I trust Tspiras, even if some people don’t.”“I’m so proud of the No vote, it will be remembered as a key moment in Greek history. I trust Tspiras, even if some people don’t.”
She felt much was going on behind the scenes and the next few days would show whether a deal could be made or whether Greece would roll towards a Grexit.She felt much was going on behind the scenes and the next few days would show whether a deal could be made or whether Greece would roll towards a Grexit.
“We always knew, whatever the referendum result, that it would be difficult whatever happens. We had never forgotten that.”“We always knew, whatever the referendum result, that it would be difficult whatever happens. We had never forgotten that.”
12.01pm BST12:0112.01pm BST12:01
Greece’s fate will effectively be decided tomorrow, flags up Ian in Brussels:Greece’s fate will effectively be decided tomorrow, flags up Ian in Brussels:
Saturday’s eurozone finance ministers meeting will be decisive in deciding whether negotiations over a third bailout begin, or whether leaders should start planning for Grexit on Sunday.Saturday’s eurozone finance ministers meeting will be decisive in deciding whether negotiations over a third bailout begin, or whether leaders should start planning for Grexit on Sunday.
#greece d-day sat, not sun,€group decision on whether to open new programme negs. eu official wd be 'astonished' if heads overturned finmins#greece d-day sat, not sun,€group decision on whether to open new programme negs. eu official wd be 'astonished' if heads overturned finmins
11.56am BST11:5611.56am BST11:56
Alexis Tsipras’s battle against the creditors has ended in ignominy, writes our economics editor Larry Elliott:Alexis Tsipras’s battle against the creditors has ended in ignominy, writes our economics editor Larry Elliott:
Greece now faces a fresh wave of austerity policies – increases in VAT, public sector wage cuts, less generous pensions – that will put the brake on activity. This approach has been tried repeatedly over the past five years and it has failed repeatedly. It will fail again.Greece now faces a fresh wave of austerity policies – increases in VAT, public sector wage cuts, less generous pensions – that will put the brake on activity. This approach has been tried repeatedly over the past five years and it has failed repeatedly. It will fail again.
Greece is like Sisyphus, the king of Corinth who according to legend angered the gods and was condemned to push an enormous rock to the top of a hill. When Sisyphus neared the summit, the boulder would slip from his grasp and tumble back down to the bottom of the slope, forcing him to start again.Greece is like Sisyphus, the king of Corinth who according to legend angered the gods and was condemned to push an enormous rock to the top of a hill. When Sisyphus neared the summit, the boulder would slip from his grasp and tumble back down to the bottom of the slope, forcing him to start again.
Alexis Tsipras, too, has angered the gods, in this case the European commission, the European Central Bank, the International Monetary Fund and most of the 18 other countries that are members of the single currency. His punishment for his five-month show of defiance will be to have Greece’s boulder replaced by an even bigger one.Alexis Tsipras, too, has angered the gods, in this case the European commission, the European Central Bank, the International Monetary Fund and most of the 18 other countries that are members of the single currency. His punishment for his five-month show of defiance will be to have Greece’s boulder replaced by an even bigger one.
More here:More here:
Related: Tsipras rattled his sabre until it was blunt – and for what?Related: Tsipras rattled his sabre until it was blunt – and for what?
Updated at 11.56am BSTUpdated at 11.56am BST
11.46am BST11:4611.46am BST11:46
Kate ConnollyKate Connolly
German Social Democrat MEP Axel Schäfer has welcomed the Greek reform list.German Social Democrat MEP Axel Schäfer has welcomed the Greek reform list.
He calling it an “important development, because the government as well as the most important opposition parties have agreed on it.”He calling it an “important development, because the government as well as the most important opposition parties have agreed on it.”
As to whether the creditors will accept it, he said: “I hope so.”As to whether the creditors will accept it, he said: “I hope so.”
Greece must receive a further bailout package, he said, adding:Greece must receive a further bailout package, he said, adding:
“That is to say, it needs new financial measures that can be paid back over a very very long timeframe.”“That is to say, it needs new financial measures that can be paid back over a very very long timeframe.”
Schäfer is of the view that a majority of the Bundestag would vote in favour of a third bailout, although he added Merkel would find it easier to get the agreement of SPD politicians than those within her own conservative bloc. [SPD are the junior coalition partner with Merkel’s CDU/CSU]Schäfer is of the view that a majority of the Bundestag would vote in favour of a third bailout, although he added Merkel would find it easier to get the agreement of SPD politicians than those within her own conservative bloc. [SPD are the junior coalition partner with Merkel’s CDU/CSU]
11.35am BST11:3511.35am BST11:35
A group of pensioners have held a protest outside the Greek finance ministry this morning:A group of pensioners have held a protest outside the Greek finance ministry this morning:
Update: I thought this was an anti-austerity demo, but a reader kindly flags up that they are actually protesting against having to queue up at banks for hours once or twice a week to get just a fraction of their pensions, under the current capital controls.Update: I thought this was an anti-austerity demo, but a reader kindly flags up that they are actually protesting against having to queue up at banks for hours once or twice a week to get just a fraction of their pensions, under the current capital controls.
Updated at 12.35pm BSTUpdated at 12.35pm BST
11.30am BST11:3011.30am BST11:30
Tomorrow’s eurogroup meeting will be a clash between the countries who are determined to keep Greece in the euro, and those who are (or were) ready to see them leave:Tomorrow’s eurogroup meeting will be a clash between the countries who are determined to keep Greece in the euro, and those who are (or were) ready to see them leave:
Royal Bank of Scotland have divided up the teams:Royal Bank of Scotland have divided up the teams:
Mood has turned: After Athens has submitted proposals, support for #Greece has gained strength. RBS sees deal likely. pic.twitter.com/FUL5LqNQAOMood has turned: After Athens has submitted proposals, support for #Greece has gained strength. RBS sees deal likely. pic.twitter.com/FUL5LqNQAO
11.16am BST11:1611.16am BST11:16
What the Greek papers sayWhat the Greek papers say
My colleague Emma Graham-Harrison has rifled through the Greek newspapers, and reports:My colleague Emma Graham-Harrison has rifled through the Greek newspapers, and reports:
I Avgi, a leftist paper close to Syriza has a large picture of Tsipras with the headline “The day of judgement” over an article laying out some of the basic details of the proposal.I Avgi, a leftist paper close to Syriza has a large picture of Tsipras with the headline “The day of judgement” over an article laying out some of the basic details of the proposal.
An editorial titled “Structural violence” condemns Greece’s partners for their cruelty.An editorial titled “Structural violence” condemns Greece’s partners for their cruelty.
Several other front page articles remind readers of the cost of austerity, including a warning from the statistics agency that one in three Greeks are in danger of falling into poverty.Several other front page articles remind readers of the cost of austerity, including a warning from the statistics agency that one in three Greeks are in danger of falling into poverty.
Ta Nea, the country’s top selling daily newspaper went with one of the top concerns for middle-class Greeks, the fate of their savings.Ta Nea, the country’s top selling daily newspaper went with one of the top concerns for middle-class Greeks, the fate of their savings.
“How the deposits are being saved” was the headline, over an article detailing how Tsipras’ plans push back the risk of “haircuts” to the savings accounts of ordinary citizens.“How the deposits are being saved” was the headline, over an article detailing how Tsipras’ plans push back the risk of “haircuts” to the savings accounts of ordinary citizens.
It also has a cartoon of Greeks queuing on a diving board over an empty public swimming pool, with the European Central Bank president, Mario Draghi, holding a slowly dripping hose. “Oh Draghi!” a would-be swimmer shouts.It also has a cartoon of Greeks queuing on a diving board over an empty public swimming pool, with the European Central Bank president, Mario Draghi, holding a slowly dripping hose. “Oh Draghi!” a would-be swimmer shouts.
#Greece front pages Ta Nea: How can deposits be saved? Agreement foresees €12bn dowry for banks [Draghi with hose] pic.twitter.com/9oBPdpLTJi#Greece front pages Ta Nea: How can deposits be saved? Agreement foresees €12bn dowry for banks [Draghi with hose] pic.twitter.com/9oBPdpLTJi
Centre-right paper Kathimerini has an opinion piece by influential managing editor Nikos Konstandaras saying the heavy burden of Greece’s future hangs on the prime minister, Alexis Tsipras, alone (here is the English language version).Centre-right paper Kathimerini has an opinion piece by influential managing editor Nikos Konstandaras saying the heavy burden of Greece’s future hangs on the prime minister, Alexis Tsipras, alone (here is the English language version).
“In these hours, Tsipras must be desperately lonely. It is inconceivable that a whole country – one that is a long-time member of the European Union – should come to a point where it depends on one person to determine its fate, not on institutions or procedures,” Konstandaras writes in the front-page editorial.“In these hours, Tsipras must be desperately lonely. It is inconceivable that a whole country – one that is a long-time member of the European Union – should come to a point where it depends on one person to determine its fate, not on institutions or procedures,” Konstandaras writes in the front-page editorial.
“Tsipras has to measure himself against history, to choose a road that will lead either to salvation or tragedy.”“Tsipras has to measure himself against history, to choose a road that will lead either to salvation or tragedy.”
He says if Tsipras is willing to take on his own party to push though a deal some of its harder-left members don’t support, he will find more allies than he has lost, “many more than he can imagine”He says if Tsipras is willing to take on his own party to push though a deal some of its harder-left members don’t support, he will find more allies than he has lost, “many more than he can imagine”
Rightwing paper Democratia gave the impression that the package was all but a done deal:Rightwing paper Democratia gave the impression that the package was all but a done deal:
“You have a package – the moment of truth”, the front page headline read, adding “Parliament rushes to give approval.”“You have a package – the moment of truth”, the front page headline read, adding “Parliament rushes to give approval.”
Updated at 1.17pm BSTUpdated at 1.17pm BST
11.07am BST11:0711.07am BST11:07
Kate ConnollyKate Connolly
German politicians have been reacting through the morning to the Greek proposals, and all of them are voicing scepticism.German politicians have been reacting through the morning to the Greek proposals, and all of them are voicing scepticism.
First up this morning on the state broadcaster ZDF’s Morgenmagazin programme, was Alexander Graf Lambsdorff, vice president of the European Parliament, and a member of Germany’s liberal FDP .First up this morning on the state broadcaster ZDF’s Morgenmagazin programme, was Alexander Graf Lambsdorff, vice president of the European Parliament, and a member of Germany’s liberal FDP .
Kate Connolly watched the interview and has translated the most salient points:Kate Connolly watched the interview and has translated the most salient points:
Lambsdorff said he had been studying the document this morning, but felt that several issues were missing from it:Lambsdorff said he had been studying the document this morning, but felt that several issues were missing from it:
“for example there’s nothing in there about the roll of the Orthodox Church, which is after all, the biggest landowner in Greece. There’s little about reform of the financial authorities and that is a very decisive question, because whether you set the corporate tax at 26% or 28% is in the end not nearly so important as whether you actually collect it. That is the problem. Several important things are missing in this programme.”“for example there’s nothing in there about the roll of the Orthodox Church, which is after all, the biggest landowner in Greece. There’s little about reform of the financial authorities and that is a very decisive question, because whether you set the corporate tax at 26% or 28% is in the end not nearly so important as whether you actually collect it. That is the problem. Several important things are missing in this programme.”
To ZDF’s question as to what the difference was between these proposals and what the Greeks turned down at the referendum, Lambsdorff said:To ZDF’s question as to what the difference was between these proposals and what the Greeks turned down at the referendum, Lambsdorff said:
“That’s precisely the point. That is the core issue here. And it is also the reason why we in the FDP say how can... a Tsipras government that allowed precisely this programme to be rejected by his people with 61%, now stand again in front of the people and credibly say: ‘we’re doing all of that afterall’ and then to credibly stand up on the international stage and say: ‘yes, we take ‘ownership’, as it’s called – we’ll take that on board as our responsibility and implement it’.“That’s precisely the point. That is the core issue here. And it is also the reason why we in the FDP say how can... a Tsipras government that allowed precisely this programme to be rejected by his people with 61%, now stand again in front of the people and credibly say: ‘we’re doing all of that afterall’ and then to credibly stand up on the international stage and say: ‘yes, we take ‘ownership’, as it’s called – we’ll take that on board as our responsibility and implement it’.
I’m missing the belief that a third bailout is possible.”I’m missing the belief that a third bailout is possible.”
Lambsdorff added that he was sceptical that the Greek problems were anyway near to being solved.Lambsdorff added that he was sceptical that the Greek problems were anyway near to being solved.
“He has Frau Merkel and Herr Schäuble precisely where he wants to have them...that might put pressure on them to give in, but I think that cannot possibly happen. A third bailout with a haircut in the Eurozone – that will not solve the Greek problems.”“He has Frau Merkel and Herr Schäuble precisely where he wants to have them...that might put pressure on them to give in, but I think that cannot possibly happen. A third bailout with a haircut in the Eurozone – that will not solve the Greek problems.”
Lambsdorff isn’t the only one voicing doubts:Lambsdorff isn’t the only one voicing doubts:
German lawmakers confused as to why Tsipras is now submitting a proposal he once slammed. http://t.co/bOKgGEjZdk pic.twitter.com/LAQ22Zr8uUGerman lawmakers confused as to why Tsipras is now submitting a proposal he once slammed. http://t.co/bOKgGEjZdk pic.twitter.com/LAQ22Zr8uU
Updated at 11.07am BSTUpdated at 11.07am BST
11.00am BST11:0011.00am BST11:00
Bild have uploaded a pdf of the Greek proposals, in English.Bild have uploaded a pdf of the Greek proposals, in English.
10.57am BST10:5710.57am BST10:57
Our Europe editor, Ian Traynor, points out that these austerity measures, although tough, are largely what was being demanded by creditors to unlock the final €7bn of Greece’s last bailout.Our Europe editor, Ian Traynor, points out that these austerity measures, although tough, are largely what was being demanded by creditors to unlock the final €7bn of Greece’s last bailout.
They’re could now unlock a three-year aid package instead:They’re could now unlock a three-year aid package instead:
#greece but if it works, @atsipras done well - parlayed 5months lifeline into 3-year 53 bn for same concessions #niceone#greece but if it works, @atsipras done well - parlayed 5months lifeline into 3-year 53 bn for same concessions #niceone
However some creditors, such as Germany, argue that a new bailout should come with tougher conditions and deeper reforms. We shall see....However some creditors, such as Germany, argue that a new bailout should come with tougher conditions and deeper reforms. We shall see....
Updated at 11.34am BSTUpdated at 11.34am BST
10.50am BST10:5010.50am BST10:50
So, what has Alexis Tsipras got for five months of deadlock, angst and the lockdown of his banking sector?So, what has Alexis Tsipras got for five months of deadlock, angst and the lockdown of his banking sector?
Well, he’s managed to get EU officials to take a hard look at Greece’s debt mountain, and consider measures to make them sustainable.Well, he’s managed to get EU officials to take a hard look at Greece’s debt mountain, and consider measures to make them sustainable.
Debt sustainability will definitely be on the table of #Eurogroup acc to EU officials #GreeceDebt sustainability will definitely be on the table of #Eurogroup acc to EU officials #Greece
And although debt relief would probably have been discussed eventually, the crisis has “smoked out” the IMF and the US Treasury to demand debt relief for Greece.And although debt relief would probably have been discussed eventually, the crisis has “smoked out” the IMF and the US Treasury to demand debt relief for Greece.
10.36am BST10:3610.36am BST10:36
Greek MPs are expected to start debating this package of measures this evening, with a vote “very late” tonight:Greek MPs are expected to start debating this package of measures this evening, with a vote “very late” tonight:
Greek proposal to lenders & loan request to be examined by Parlt cttee at 3pm w debate to begin at 7pm + vote very lateGreek proposal to lenders & loan request to be examined by Parlt cttee at 3pm w debate to begin at 7pm + vote very late
(and where the Greek parliament is concerned, that can be really quite late indeed)(and where the Greek parliament is concerned, that can be really quite late indeed)
10.28am BST10:2810.28am BST10:28
Scepticism in GermanyScepticism in Germany
Kate ConnollyKate Connolly
As German politicians pore over the Greek proposals, some officials and economists are voicing scepticism about much of the Greek’s reform ideas, writes Kate Connolly from Berlin.As German politicians pore over the Greek proposals, some officials and economists are voicing scepticism about much of the Greek’s reform ideas, writes Kate Connolly from Berlin.
Michael Fuchs, deputy parliamentary floor leader of Merkel’s Christian Democrats, was quick to raise concerns.Michael Fuchs, deputy parliamentary floor leader of Merkel’s Christian Democrats, was quick to raise concerns.
Fuchs warned:Fuchs warned:
“We have to be very careful because honestly, because I have a little bit of a problem to trust it because what is the difference between Sunday and today?“We have to be very careful because honestly, because I have a little bit of a problem to trust it because what is the difference between Sunday and today?
On Sunday the Greek people voted against these measurements.On Sunday the Greek people voted against these measurements.
But financial experts have welcomed what they see as growing signs that an agreement can be reached.But financial experts have welcomed what they see as growing signs that an agreement can be reached.
Markets reacted positively to the existence of a document, saying that it sent out a positive signal. In the first quarter hour of trading the Dax rose by around two per cent, the Mdax climbed by a similar amount, and the TecDax by 2.5 per cent.Markets reacted positively to the existence of a document, saying that it sent out a positive signal. In the first quarter hour of trading the Dax rose by around two per cent, the Mdax climbed by a similar amount, and the TecDax by 2.5 per cent.
The Postbank’s chief economist Marco Bargel welcomed the proposals as a starting point, saying:The Postbank’s chief economist Marco Bargel welcomed the proposals as a starting point, saying:
“The Greeks are coming closer to the creditors. That was not to be expected after Sunday’s referendum. The markets are expecting a successful conclusion, as the appreciation of the Euro and the higher returns of German federal bonds shows”.“The Greeks are coming closer to the creditors. That was not to be expected after Sunday’s referendum. The markets are expecting a successful conclusion, as the appreciation of the Euro and the higher returns of German federal bonds shows”.
However others were more sceptical: Jörg Krämer from the Commerzbank says that the Greek government has not presented anything new.However others were more sceptical: Jörg Krämer from the Commerzbank says that the Greek government has not presented anything new.
“Other than a few cosmetic improvements, the Greek government has presented the very same list of reforms which it advised its people to reject just a week ago.”“Other than a few cosmetic improvements, the Greek government has presented the very same list of reforms which it advised its people to reject just a week ago.”
He told Spiegel, the list was no guarantee that the reforms would actually be implemented. “Often times in the past they have not been implemented,” he said. Any agreement on the basis of the document looked like being a ‘lazy compromise’ which would “strengthen the reform opponents of other countries, and would ultimately lead to the weakening of the single currency”.He told Spiegel, the list was no guarantee that the reforms would actually be implemented. “Often times in the past they have not been implemented,” he said. Any agreement on the basis of the document looked like being a ‘lazy compromise’ which would “strengthen the reform opponents of other countries, and would ultimately lead to the weakening of the single currency”.
10.22am BST10:2210.22am BST10:22
The Sunday crisis summit might yet be cancelled, reports our Europe editor Ian Traynor.The Sunday crisis summit might yet be cancelled, reports our Europe editor Ian Traynor.
If, and it’s a big if, eurozone finance ministers give the thumbs-up on Saturday.If, and it’s a big if, eurozone finance ministers give the thumbs-up on Saturday.
#greece if agreement sat on new deal, no need for sun summit - eu official#greece if agreement sat on new deal, no need for sun summit - eu official
10.20am BST10:2010.20am BST10:20
Creditors to discuss Greek proposalCreditors to discuss Greek proposal
Newsflash: IMF chief Christine Lagarde, ECB president Mario Draghi, European Commission head Jean-Claude Juncker and Eurogroup president Jeroen Dijsselbloem are to discuss the Greek proposals at noon BST.Newsflash: IMF chief Christine Lagarde, ECB president Mario Draghi, European Commission head Jean-Claude Juncker and Eurogroup president Jeroen Dijsselbloem are to discuss the Greek proposals at noon BST.
10.15am BST10:1510.15am BST10:15
This is worrying - industrial output across Greece’s factories tumbled by 4% in May.This is worrying - industrial output across Greece’s factories tumbled by 4% in May.
That suggests the country was falling deeper into recession even before the imposition of capital controls at the end of June.That suggests the country was falling deeper into recession even before the imposition of capital controls at the end of June.
#Greece | MAY INDUSTRIAL PRODUCTION Y/Y: -4.0% V 0.4% PRIOR pic.twitter.com/at56Vi3elO#Greece | MAY INDUSTRIAL PRODUCTION Y/Y: -4.0% V 0.4% PRIOR pic.twitter.com/at56Vi3elO
Toll that Greek crisis is taking on economy evident in 4.0% y/y drop in industrial production in May; manufacturing down 2.7% y/yToll that Greek crisis is taking on economy evident in 4.0% y/y drop in industrial production in May; manufacturing down 2.7% y/y
Updated at 10.31am BSTUpdated at 10.31am BST
10.06am BST10:0610.06am BST10:06
Jeroen Dijsselbloem, president of the eurogroup of finance ministers, received Greece’s proposal overnight.Jeroen Dijsselbloem, president of the eurogroup of finance ministers, received Greece’s proposal overnight.
And he has suggested that the eurogroup could take a “major decision” on the Greek crisis on Saturday:And he has suggested that the eurogroup could take a “major decision” on the Greek crisis on Saturday:
Eurogroup's Dijsselbloem: Could make 'major decision' about Greece at meeting, Saturday. More: http://t.co/WxRMUAdHtG pic.twitter.com/E8I2FEblp6Eurogroup's Dijsselbloem: Could make 'major decision' about Greece at meeting, Saturday. More: http://t.co/WxRMUAdHtG pic.twitter.com/E8I2FEblp6
Euro ministers should give an early verdict today:Euro ministers should give an early verdict today:
9.47am BST09:479.47am BST09:47
An influential Syriza MP, party secretary Dimitris Vitsas, has told Greek TV that he believes Tsipras’s party will stay united, if creditors commit to discussing debt relief this autumn.An influential Syriza MP, party secretary Dimitris Vitsas, has told Greek TV that he believes Tsipras’s party will stay united, if creditors commit to discussing debt relief this autumn.
SYRIZA MP Vitsas "Atmosphere in parliamentary group is fine. We're all working for an agreement" #Greece #euroSYRIZA MP Vitsas "Atmosphere in parliamentary group is fine. We're all working for an agreement" #Greece #euro
SYRIZA MP Vitsas: "We want clear reference to debt relief & a commitment from lenders to begin discussing this from October" #Greece #euroSYRIZA MP Vitsas: "We want clear reference to debt relief & a commitment from lenders to begin discussing this from October" #Greece #euro
SYRIZA MP Vitsas tells Skai TV that he's "sure" parliamentary group will remain united #Greece #euroSYRIZA MP Vitsas tells Skai TV that he's "sure" parliamentary group will remain united #Greece #euro
9.44am BST09:449.44am BST09:44
Readers with a decent grasp of Greek can read the full proposals here, on the Athens parliament website.Readers with a decent grasp of Greek can read the full proposals here, on the Athens parliament website.
There’s an English translation here on Naftemporiki.gr.There’s an English translation here on Naftemporiki.gr.
9.38am BST09:389.38am BST09:38
Greek bond yields are tumbling this morning, as investors deduce that Athens is less likely to default on its loans.Greek bond yields are tumbling this morning, as investors deduce that Athens is less likely to default on its loans.
Chart of the day: #Greece's 2y yields in free fall as France's Hollande calls Greek proposals serious and credible . pic.twitter.com/mkUfchyPbHChart of the day: #Greece's 2y yields in free fall as France's Hollande calls Greek proposals serious and credible . pic.twitter.com/mkUfchyPbH
(yields measure the interest rate on a bond, and fall when prices rise)(yields measure the interest rate on a bond, and fall when prices rise)
The yield on Greek two-year bonds is still alarmingly high, at 36%, which suggests there is still a high chance of restructuring. But that’s down from almost 55% yesterday.The yield on Greek two-year bonds is still alarmingly high, at 36%, which suggests there is still a high chance of restructuring. But that’s down from almost 55% yesterday.
9.35am BST09:359.35am BST09:35
French president Francois Hollande has also called Greece’s proposals “serious and credible”, and a sign that Athens is determined to stay in the eurozone.French president Francois Hollande has also called Greece’s proposals “serious and credible”, and a sign that Athens is determined to stay in the eurozone.
9.18am BST09:189.18am BST09:18
Greek parliament to begin debate at committee level at 3pm, BBG reports.Greek parliament to begin debate at committee level at 3pm, BBG reports.
9.18am BST09:189.18am BST09:18
France: These are serious, credible proposalsFrance: These are serious, credible proposals
The French government is urging its fellow eurozone members to support Greece’s bailout proposal.The French government is urging its fellow eurozone members to support Greece’s bailout proposal.
European affairs minister Harlem Desir told Radio Classique this morning that:European affairs minister Harlem Desir told Radio Classique this morning that:
“It is a very significant moment for Greece, but also for Europe.“It is a very significant moment for Greece, but also for Europe.
“The proposals which have been put forward are all serious, credible, comprehensive.”“The proposals which have been put forward are all serious, credible, comprehensive.”
And economy minister Emmanuel Macron has just said that “major advances” have been made in recent days. He’s “reasonably optimistic” about a deal.And economy minister Emmanuel Macron has just said that “major advances” have been made in recent days. He’s “reasonably optimistic” about a deal.
French officials have been in Athens this week, working on the reform plan. So having assisted with Greece’s homework, they’re helping to mark it too...French officials have been in Athens this week, working on the reform plan. So having assisted with Greece’s homework, they’re helping to mark it too...
8.59am BST08:598.59am BST08:59
Angelique ChrisafisAngelique Chrisafis
The tax status of certain far-flung Greek islands will be affected by the new proposals, reports my colleague Angelique Chrisafis who is in Greece.The tax status of certain far-flung Greek islands will be affected by the new proposals, reports my colleague Angelique Chrisafis who is in Greece.
The creditors had insisted last month that Greece completely scrap its special low VAT rates for distant Greek islands. This special VAT discount rate has been in place for decades, to help certain islands which are far away from the mainland and have to pay high costs to bring essential goods long distances from Athens or Thessaloniki.The creditors had insisted last month that Greece completely scrap its special low VAT rates for distant Greek islands. This special VAT discount rate has been in place for decades, to help certain islands which are far away from the mainland and have to pay high costs to bring essential goods long distances from Athens or Thessaloniki.
Under the new proposals, the Greek government has agreed to remove the special VAT discount, initially targeting only the richest and least remote of those islands, which would include the tourist-magnet of Mykonos. But it seems that the special measures would remain in place to help the most remote islands - and presumably the smaller and poorer of those islands, whose dwindling populations have already been hit hard by the crisis.Under the new proposals, the Greek government has agreed to remove the special VAT discount, initially targeting only the richest and least remote of those islands, which would include the tourist-magnet of Mykonos. But it seems that the special measures would remain in place to help the most remote islands - and presumably the smaller and poorer of those islands, whose dwindling populations have already been hit hard by the crisis.
Fuller details of which islands are concerned should emerge later today.Fuller details of which islands are concerned should emerge later today.
You can read Angelique’s report from Rhodes last month on why the VAT rate on the islands is a contentious issue and was previously one of the Greek government’s sticking points.You can read Angelique’s report from Rhodes last month on why the VAT rate on the islands is a contentious issue and was previously one of the Greek government’s sticking points.
8.52am BST08:528.52am BST08:52
"Either we'll carry on all together or we will all fall together," Greek PM #Tsipras tells SYRIZA lawmakers #Greece"Either we'll carry on all together or we will all fall together," Greek PM #Tsipras tells SYRIZA lawmakers #Greece
8.43am BST08:438.43am BST08:43
Tsipras appeals for party unityTsipras appeals for party unity
Alexis Tsipras has met with MPs from his Syriza coalition in Athens.Alexis Tsipras has met with MPs from his Syriza coalition in Athens.
The PM has urged them to back the €13bn austerity plan submitted last night, according to one government official who spoke to Reuters.The PM has urged them to back the €13bn austerity plan submitted last night, according to one government official who spoke to Reuters.
Tsipras said:Tsipras said:
“We are confronted with crucial decisions,”“We are confronted with crucial decisions,”
We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us,but certainly not given a mandate to take Greece out of the eurozone.”We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us,but certainly not given a mandate to take Greece out of the eurozone.”
And there was an appeal for party unity:And there was an appeal for party unity:
“We are all in this together.”“We are all in this together.”
It really is a dizzying turnaround:It really is a dizzying turnaround:
Tsipras trying to get backing from his MP's for reform proposals that are tougher than those rejected in last week's referendum.#GreeceTsipras trying to get backing from his MP's for reform proposals that are tougher than those rejected in last week's referendum.#Greece
TOTALLY CAVED IN --->TSIPRAS TELLS PARLIAMENTARY GROUP HE HAS MANDATE FOR BETTER DEAL, NOT TO TAKE GREECE OUT OF EUROZONETOTALLY CAVED IN --->TSIPRAS TELLS PARLIAMENTARY GROUP HE HAS MANDATE FOR BETTER DEAL, NOT TO TAKE GREECE OUT OF EUROZONE
But many Syriza MPs are likely to back Tsipras, judging from these photos:But many Syriza MPs are likely to back Tsipras, judging from these photos:
8.25am BST08:258.25am BST08:25
Here’s the picture across Europe’s major stock markets, via Reuters:Here’s the picture across Europe’s major stock markets, via Reuters:
Investors are a little surprised by the scale of Alexis Tsipras’s climbdown:Investors are a little surprised by the scale of Alexis Tsipras’s climbdown:
As Connor Campbell of Spreadex.com explains:As Connor Campbell of Spreadex.com explains:
In a strange turn of events considering the resounding ‘no’ cried out by the Greek people to austerity, Tsipras submitted a proposal to creditors on Thursday that contains around €13 billion in cuts and tax rises, €4 billion more than the plan the public rejected.In a strange turn of events considering the resounding ‘no’ cried out by the Greek people to austerity, Tsipras submitted a proposal to creditors on Thursday that contains around €13 billion in cuts and tax rises, €4 billion more than the plan the public rejected.
The concessions this reflects, especially on primary budget surpluses, VAT and pensions (i.e. all the ‘red lines’), and the swelling chances of a deal actually being made, is in no doubt the reason behind the robust early gains of the DAX and CAC.The concessions this reflects, especially on primary budget surpluses, VAT and pensions (i.e. all the ‘red lines’), and the swelling chances of a deal actually being made, is in no doubt the reason behind the robust early gains of the DAX and CAC.
However there is still more work for Tsipras to do, and in many ways the most difficult task lies ahead; the Greek PM now has to try and convince his government this Friday to back the €13 billion plan, one that seemingly flies in the face of the anti-austerity rhetoric that has been Syriza’s bread and butter since before the party was elected.However there is still more work for Tsipras to do, and in many ways the most difficult task lies ahead; the Greek PM now has to try and convince his government this Friday to back the €13 billion plan, one that seemingly flies in the face of the anti-austerity rhetoric that has been Syriza’s bread and butter since before the party was elected.
Markets cheer #Greece's bailout plan: Germany's Dax jumps >2% above 11k. pic.twitter.com/1OwEJXtT75Markets cheer #Greece's bailout plan: Germany's Dax jumps >2% above 11k. pic.twitter.com/1OwEJXtT75
Updated at 8.27am BSTUpdated at 8.27am BST
8.19am BST08:198.19am BST08:19
From VAT rises to defence spending cuts, here’s a breakdown of what Greece ahs submitted to:From VAT rises to defence spending cuts, here’s a breakdown of what Greece ahs submitted to:
Related: Key points: Greece's proposals to help end talks deadlockRelated: Key points: Greece's proposals to help end talks deadlock
8.17am BST08:178.17am BST08:17
Another sign of market confidence: Money is flowing out of German government bonds this morning and into Italian debt.Another sign of market confidence: Money is flowing out of German government bonds this morning and into Italian debt.
SG: Mr Market assumes that Greek deal flies (for now). 10y Bund yields jump 8bps while 10y Italian ylds drop by 13bps pic.twitter.com/8gWZEXNmKdSG: Mr Market assumes that Greek deal flies (for now). 10y Bund yields jump 8bps while 10y Italian ylds drop by 13bps pic.twitter.com/8gWZEXNmKd
8.13am BST08:138.13am BST08:13
The euro is rallying this morning too, up over half a cent against the US dollar in early trading.The euro is rallying this morning too, up over half a cent against the US dollar in early trading.
What difference a day makes: #Euro gains, briefly touches $1.1135, Highest since Jul1 as overnight Greek proposal has rekindled deal hope.What difference a day makes: #Euro gains, briefly touches $1.1135, Highest since Jul1 as overnight Greek proposal has rekindled deal hope.
8.10am BST08:108.10am BST08:10
Markets jumpMarkets jump
European stock markets have jumped, as investors hail the news that Alexis Tsipras has submitted a new list of reforms to Greece’s creditors.European stock markets have jumped, as investors hail the news that Alexis Tsipras has submitted a new list of reforms to Greece’s creditors.
The French CAC leapt by 2.4%, the German DAX gained 1.6%, and in London the FTSE 100 is up 70 points or 1%.The French CAC leapt by 2.4%, the German DAX gained 1.6%, and in London the FTSE 100 is up 70 points or 1%.
Traders are still a little cautious, though, after the roller-coaster ride this year.Traders are still a little cautious, though, after the roller-coaster ride this year.
As Chris Weston of IG explains:As Chris Weston of IG explains:
The Greek public voted against austerity last Sunday, yet what we have seen is a giant step closer towards the Creditors’ prior proposal which was subsequently rejected, ironically by Tsipras.The Greek public voted against austerity last Sunday, yet what we have seen is a giant step closer towards the Creditors’ prior proposal which was subsequently rejected, ironically by Tsipras.
There will be factions within the Greek parliament that simply won’t know what Tsipras is playing at, so when the Greek parliament vote on these measures today it is by no means a done deal.There will be factions within the Greek parliament that simply won’t know what Tsipras is playing at, so when the Greek parliament vote on these measures today it is by no means a done deal.
8.02am BST08:028.02am BST08:02
Introduction: Deal hopes rise after Tsipras capitulatesIntroduction: Deal hopes rise after Tsipras capitulates
Good morning, and welcome to our rolling coverage of the Greek bailout crisis.Good morning, and welcome to our rolling coverage of the Greek bailout crisis.
Leonardo Da Vinci once scribbled in his notebook:Leonardo Da Vinci once scribbled in his notebook:
It is easier to resist at the beginning than at the end.It is easier to resist at the beginning than at the end.
And Alexis Tsipras appears to have taken this to heart. Last night, the Greek PM finally submitted an economic reform plan that looks terribly similar to the measures he’s been battling for months, in return for a €53.5bn bailout.And Alexis Tsipras appears to have taken this to heart. Last night, the Greek PM finally submitted an economic reform plan that looks terribly similar to the measures he’s been battling for months, in return for a €53.5bn bailout.
Greece is now proposing sweeping changes to VAT, standardising at 23%, and abolishing exemptions on its islands (starting with the most popular). Corporation tax will rise to 28% (as its creditors demanded), not the 29% Greece wanted. And it will crack on with raising the retirement age to 67.Greece is now proposing sweeping changes to VAT, standardising at 23%, and abolishing exemptions on its islands (starting with the most popular). Corporation tax will rise to 28% (as its creditors demanded), not the 29% Greece wanted. And it will crack on with raising the retirement age to 67.
As we covered in last night’s liveblog, analysts say it looks like a comprehensive climbdown by Athens, after European leaders called a summit on Sunday to plan for Greece’s exit from the eurozone.As we covered in last night’s liveblog, analysts say it looks like a comprehensive climbdown by Athens, after European leaders called a summit on Sunday to plan for Greece’s exit from the eurozone.
Alexis Tsipras is meeting with his MPs this morning to discuss the plan. That could be a bumpy meeting, given Syriza’s opposition to austerity.Alexis Tsipras is meeting with his MPs this morning to discuss the plan. That could be a bumpy meeting, given Syriza’s opposition to austerity.
But it does appear that Greek MPs will approve the plan; a vote is expected today, so that the country’s PM and finance minister can negotiate at this weekend’s crunch meetings.But it does appear that Greek MPs will approve the plan; a vote is expected today, so that the country’s PM and finance minister can negotiate at this weekend’s crunch meetings.
Bill submitted last night authorises Tsipras & Tsakalotos to negotiate with lenders. Has to pass through ctte, then plenary #Greece #euroBill submitted last night authorises Tsipras & Tsakalotos to negotiate with lenders. Has to pass through ctte, then plenary #Greece #euro
The goal - an agreement that would allow Greece’s banks to reopen and some level of normality to return.The goal - an agreement that would allow Greece’s banks to reopen and some level of normality to return.
But how will the plan be received across Europe? And how will the Greek people react to the news of another programme, especially after being promised that Syriza would end the cycle of austerity?But how will the plan be received across Europe? And how will the Greek people react to the news of another programme, especially after being promised that Syriza would end the cycle of austerity?
We’re about to find out....We’re about to find out....
Updated at 8.54am BSTUpdated at 8.54am BST