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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)
1.55pm BST13:55
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.
Non-stop? Still enough time to tweet, it seems..
1.49pm BST13:49
Angela Merkel faces 'huge' challenge over Greece
Kate 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.
“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.”
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.
“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.
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.”
1.41pm BST13:41
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/DLa48qIpuc
1.40pm BST13:40
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
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.
SYRIZA 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 President Laimdota Straujuma, speaking on state broadcaster Deutschlankfunk (dlf.de) this morning.The view from Latvia has been expressed by President 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”.
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