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Greek debt crisis: deal reached after marathon all-night summit - as it happened Greek debt crisis: deal reached after marathon all-night summit - as it happened
(30 days later)
12.20pm BST12.20pm BST
12:2012:20
Closing summary: Finally, a dealClosing summary: Finally, a deal
It’s all over in Brussels, and Eurozone leaders are heading home after what appears to be the longest summit in EU history.It’s all over in Brussels, and Eurozone leaders are heading home after what appears to be the longest summit in EU history.
So after more than 26 hours, we’re going to wrap this liveblog up and launch a new one.So after more than 26 hours, we’re going to wrap this liveblog up and launch a new one.
Related: Greek crisis: Tsipras faces uphill battle to implement bailout deal - live updatesRelated: Greek crisis: Tsipras faces uphill battle to implement bailout deal - live updates
Here’s the state of play:Here’s the state of play:
Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.
Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.
The Financial Times has dubbed it:The Financial Times has dubbed it:
the most intrusive economic supervision programme ever mounted in the EU.the most intrusive economic supervision programme ever mounted in the EU.
Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.
The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.
The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.
Emerging from the summit, Tsipras admitted it had been tough - but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.Emerging from the summit, Tsipras admitted it had been tough - but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.
He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.
But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.
Two separate people who saw Tsipras last night described him as a "beaten dog" http://t.co/aFBx7nPWpZ pic.twitter.com/NtQGjPahIPTwo separate people who saw Tsipras last night described him as a "beaten dog" http://t.co/aFBx7nPWpZ pic.twitter.com/NtQGjPahIP
Attention now turns to Athens, where Tsipras will arrive home to swirling speculation of cabinet reshuffles, unity governments and even fresh elections.Attention now turns to Athens, where Tsipras will arrive home to swirling speculation of cabinet reshuffles, unity governments and even fresh elections.
To catch up with the action, visit our new liveblog here:To catch up with the action, visit our new liveblog here:
Related: Greek crisis: Tsipras faces uphill battle to implement bailout deal - live updatesRelated: Greek crisis: Tsipras faces uphill battle to implement bailout deal - live updates
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at 12.22pm BSTat 12.22pm BST
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Katie AllenKatie Allen
Stock markets around Europe have welcomed the tentative deal reached in Brussels this morning.Stock markets around Europe have welcomed the tentative deal reached in Brussels this morning.
The eurozone’s blue-chip Euro STOXX 50 index hit a two-week high in morning trading and is currently up around 2%. Banking stocks in particular are benefiting from the relief rally and the eurozone banking index is up 2.7%.The eurozone’s blue-chip Euro STOXX 50 index hit a two-week high in morning trading and is currently up around 2%. Banking stocks in particular are benefiting from the relief rally and the eurozone banking index is up 2.7%.
Individual country bourses are also higher:Individual country bourses are also higher:
On bond markets, the yields on those bonds seen as most vulnerable to a Greek exit from the euro fell back on relief the crisis could be nearing resolution. The yields on the 10-years bonds of Italy, Spain and Portugal all fell back.On foreign exchange markets, the euro initially rallied against other major currencies before easing back as traders looked beyond intitial positive headlines out of Brussels and considered the hurdles still to come this week. The single currency is now down around 0.7% against the dollar at $1.108 and 1.2% against the pound at 71.120 pence.On bond markets, the yields on those bonds seen as most vulnerable to a Greek exit from the euro fell back on relief the crisis could be nearing resolution. The yields on the 10-years bonds of Italy, Spain and Portugal all fell back.On foreign exchange markets, the euro initially rallied against other major currencies before easing back as traders looked beyond intitial positive headlines out of Brussels and considered the hurdles still to come this week. The single currency is now down around 0.7% against the dollar at $1.108 and 1.2% against the pound at 71.120 pence.
Analysts warn there are plenty of potential stumbling blocks ahead this week to unsettle markets.Analysts warn there are plenty of potential stumbling blocks ahead this week to unsettle markets.
Ruben Segura-Cayuel, Europe economist at Bank of America Merrill Lynch comments:Ruben Segura-Cayuel, Europe economist at Bank of America Merrill Lynch comments:
“We argued last week that likely Grexit would be avoided this weekend. And at this time ... it looks like it will be avoided, but the days ahead are full of opportunities for it to materialise. We remain in the path of Grexit and everything needs to go perfect to avoid it. We likely need a cabinet reshuffle in Greece. Then the Greek government needs to pass seven packages before Wednesday just to open the door to start negotiations for a new programme. It also needs to propose more reforms in several fronts. After all this happens, then talks about a new (third) package can start, assuming other national parliaments agree to do so...“We argued last week that likely Grexit would be avoided this weekend. And at this time ... it looks like it will be avoided, but the days ahead are full of opportunities for it to materialise. We remain in the path of Grexit and everything needs to go perfect to avoid it. We likely need a cabinet reshuffle in Greece. Then the Greek government needs to pass seven packages before Wednesday just to open the door to start negotiations for a new programme. It also needs to propose more reforms in several fronts. After all this happens, then talks about a new (third) package can start, assuming other national parliaments agree to do so...
We still think there is room for a positive resolution, but even the best case scenario is a deal with many conditions and very gradual disbursements, which will have substantial implementation risks because of no ownership.”We still think there is room for a positive resolution, but even the best case scenario is a deal with many conditions and very gradual disbursements, which will have substantial implementation risks because of no ownership.”
11.05am BST11.05am BST
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Stephanie KirchgaessnerStephanie Kirchgaessner
Italy’s prime minister Matteo Renzi told at a press conference in Brussels that there were moments during the marathon talks when he would have bet that negotiations would fail.Italy’s prime minister Matteo Renzi told at a press conference in Brussels that there were moments during the marathon talks when he would have bet that negotiations would fail.
“But today instead we have taken a decisive stop forward.”“But today instead we have taken a decisive stop forward.”
“At many moments, a deal could not be taken for granted. We should not toast triumphantly about it, nor should we diminish it,” he said, adding that there was still much work left to be done.“At many moments, a deal could not be taken for granted. We should not toast triumphantly about it, nor should we diminish it,” he said, adding that there was still much work left to be done.
He denied that Germany “alone” was in charge of Europe. While he acknowledged that the Germans had a “different approach”, he said it was one he respected because it represented the will of a democratically elected government and that the overnight talks has been a “real discussion”.He denied that Germany “alone” was in charge of Europe. While he acknowledged that the Germans had a “different approach”, he said it was one he respected because it represented the will of a democratically elected government and that the overnight talks has been a “real discussion”.
Renzi also acknowledged that he supported keeping the fund that will hold Greek assets in Athens, not Luxembourg, saying that such a move would have been “a humiliation”.Renzi also acknowledged that he supported keeping the fund that will hold Greek assets in Athens, not Luxembourg, saying that such a move would have been “a humiliation”.
[going into the talks, the Italian PM declared that he would tell Germany that “enough is enough”][going into the talks, the Italian PM declared that he would tell Germany that “enough is enough”]
And he added that Italy’s moment of crisis - despite still having high debt levels - was behind it.And he added that Italy’s moment of crisis - despite still having high debt levels - was behind it.
“Italy is part of the solution and not the problem.”“Italy is part of the solution and not the problem.”
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Just read the body language:Just read the body language:
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at 11.02am BSTat 11.02am BST
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Alexis Tsipras has even agreed to consider reversing some of the measures his government has taken this year:Alexis Tsipras has even agreed to consider reversing some of the measures his government has taken this year:
this section of Eurosummit statement is especially humiliating for Syriza pic.twitter.com/yjxEuTTki3this section of Eurosummit statement is especially humiliating for Syriza pic.twitter.com/yjxEuTTki3
Does that mean that the Athens cleaning ladies, who were famously rehired after protesting their dismissals, will be laid off again?Does that mean that the Athens cleaning ladies, who were famously rehired after protesting their dismissals, will be laid off again?
10.34am BST10.34am BST
10:3410:34
The new measures Greece must now implementThe new measures Greece must now implement
The final Euro Summit statement confirms that Greece has agreed to immediately implement sweeping measures, after a bruising battle in Brussels:The final Euro Summit statement confirms that Greece has agreed to immediately implement sweeping measures, after a bruising battle in Brussels:
This includes pension reforms, liberalising its economy (from Sunday opening hours to opening up closed professions), privatising its energy transmission network, reforming its labour market practices (including new rules on industrial action, and collective dismissals), and action on non-performing loans:This includes pension reforms, liberalising its economy (from Sunday opening hours to opening up closed professions), privatising its energy transmission network, reforming its labour market practices (including new rules on industrial action, and collective dismissals), and action on non-performing loans:
That is on top of the austerity its MPs agreed on Friday:That is on top of the austerity its MPs agreed on Friday:
Here are the key points:Here are the key points:
And on top of that, Greece will also establish a new fund to sell off valuable assets to help repay its new bailout, and refinance its banks.And on top of that, Greece will also establish a new fund to sell off valuable assets to help repay its new bailout, and refinance its banks.
Or as the statement put it:Or as the statement put it:
UpdatedUpdated
at 10.35am BSTat 10.35am BST
10.19am BST10.19am BST
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The official statement has just been released:The official statement has just been released:
NOW ONLINE: #EUROSUMMIT STATEMENT (PDF) http://t.co/dfwTY1uCxr #GREECENOW ONLINE: #EUROSUMMIT STATEMENT (PDF) http://t.co/dfwTY1uCxr #GREECE
10.18am BST10.18am BST
10:1810:18
Analyst: It's Merkel 1, Tsipras 0Analyst: It's Merkel 1, Tsipras 0
Demetrios Efstathiou of ICBC Standard Bank says that Greece has been comprehensively routed by Germany in Brussels this weekend:Demetrios Efstathiou of ICBC Standard Bank says that Greece has been comprehensively routed by Germany in Brussels this weekend:
#Tsipras gov't has to pass 4 bills by Wed & another 2 by July 22, which is probably more than its legislated since Jan election win #Greece#Tsipras gov't has to pass 4 bills by Wed & another 2 by July 22, which is probably more than its legislated since Jan election win #Greece
10.13am BST10.13am BST
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The FT’s Peter Spiegel is tweeting key points from the deal:The FT’s Peter Spiegel is tweeting key points from the deal:
Just got leaked version of final #Greece agreement. Here's the language on then new €50bn fund. pic.twitter.com/H0g4ib1G5WJust got leaked version of final #Greece agreement. Here's the language on then new €50bn fund. pic.twitter.com/H0g4ib1G5W
Here's amt of #Greece bridge financing still to be decided by #eurogroup: €7bn by Mon, €5bn by Aug. pic.twitter.com/foIPvqD8ywHere's amt of #Greece bridge financing still to be decided by #eurogroup: €7bn by Mon, €5bn by Aug. pic.twitter.com/foIPvqD8yw
Remember debt relief? We'll get to that later. Much later. #Greece pic.twitter.com/2J0egaLCRIRemember debt relief? We'll get to that later. Much later. #Greece pic.twitter.com/2J0egaLCRI
10.10am BST10.10am BST
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Alexis Tsipras appears to have failed to prevent the IMF being involved in Greece, as part of this new bailout.Alexis Tsipras appears to have failed to prevent the IMF being involved in Greece, as part of this new bailout.
IMF, still there in 2016 pic.twitter.com/heXVP8V2lmIMF, still there in 2016 pic.twitter.com/heXVP8V2lm
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The ball, it appears, is still in the Greek court:The ball, it appears, is still in the Greek court:
#EuroSummit statement: "The risks of not concluding swiftly the negotiations remain fully with Greece."#EuroSummit statement: "The risks of not concluding swiftly the negotiations remain fully with Greece."
9.55am BST9.55am BST
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Eurozone finance minister are due to convene again in a few hours, after their emergency meeting on Saturday night, and Sunday morning.Eurozone finance minister are due to convene again in a few hours, after their emergency meeting on Saturday night, and Sunday morning.
On the agenda: finding bridge financing to tide Greece through the summer while this third bailout is agreed.On the agenda: finding bridge financing to tide Greece through the summer while this third bailout is agreed.
#Greece needs €7bn by 20 July and €5bn by mid August...main issue for #eurogroup meeting starting... in 4 hrs or so.#Greece needs €7bn by 20 July and €5bn by mid August...main issue for #eurogroup meeting starting... in 4 hrs or so.
Striking how confident EU leaders are sounding about ratification in #Greece and national parliaments.Striking how confident EU leaders are sounding about ratification in #Greece and national parliaments.
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But even if Greek banks are able to reopen, there’s little hope of capital controls being lifted until a third bailout has actually been agree.But even if Greek banks are able to reopen, there’s little hope of capital controls being lifted until a third bailout has actually been agree.
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09:50
The political agreement reached in Brussels means the European Central Bank shouldn’t take the dramatic step of terminating the emergency liquidity provided to Greek banks.
It could even provide more, allowing Greek banks to reopen after two weeks.
ECB told that if gives extra €2bn of ELA, banks re-open tmrw - not as normal, €60 withdrawal limit to stay, but to provide other services
Updated
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Today’s bailout deal comes just eight days after the Greek people comprehensively rejected its creditors’ original demands.
Analyst Marc Ostwald of ADM Investor Services reckons the measures in this bailout package are “infinitesimally worse” than the ones turned down in last Sunday’s referendum:
Indeed what is on the table as a deal highlights that:
a) there is no long-term future for the Eurozone;
b) the desire on the part of Eurozone creditor nations to completely destroy the Greek economy - it can certainly be asserted that this is indeed a worse deal than the 1919 Treaty of Versailles.
In terms of a near-term timeline, he says:
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The full details of the Greek agreement hasn’t been released yet (but it may leak soon).
But the draft statement in Brussels last night demanded that Greece must immediately take these steps:
So the next few days in Athens will be very intense, as MPs are asked to approve new measures on top of the austerity agreed to on Friday night.
9.34am BST
09:34
Nigel Farage, the leader of Britain’s eurosceptic UKIP party, has said the Greek parliament should reject the agreement:
“If I were a Greek politician I would vote against this deal. If I were a Greek ‘no’ voter I would be protesting in the streets. Mr Tsipras’s position is now at stake.”
“This conditional deal shows that national democracy and membership of the eurozone are incompatible.”
(quotes via AP)
Last night, tens of thousands of social media users had similar thoughts, as they flocked to the #thisisacoup hashtag.
Related: #ThisIsACoup: Germany faces backlash over tough Greece bailout demands
9.21am BST
09:21
9.21am BST
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Here’s the full statement which a bleary-eyed Donald Tusk delivered this morning.
Good morning. Today, we had only one objective: to reach an agreement. After 17 hours of negotiations, we have finally reached it. One can say that we have ‘agreekment’. Leaders have agreed in principle that they are ready to start negotiations on an ESM programme, which in other words means continued support for Greece.
There are strict conditions to be met. The approval of several national parliaments, including the Greek parliament, is now needed for negotiations on an ESM programme to formally begin.
Nevertheless, the decision gives Greece a chance to get back on track with the support of European partners. It also avoids the social, economic and political consequences that a negative outcome would have brought. I welcome the progress and the constructive position of Greece that helps to bring back trust among euro zone partners.
Following national procedures, the Eurogroup will work with the Institutions to swiftly take forward the negotiations. Finance ministers will also as a matter of urgency discuss how to help Greece meet her financial needs in the short term, so-called bridge-financing.
I would like to thank the President of the Commission Jean-Claude Juncker and the Eurogroup President Jeroen Dijsselbloem for their dedication and involvement in this progress. Without your work, today’s agreement wouldn’t be possible. Thank you.
9.16am BST
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Malta’s finance minister tweets:
Deal on Greece is one small but very significant step forward for Greece and the Eurozone.
9.13am BST
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French president Francois Hollande has confirmed that the Greek agreement will include an eventual re-profiling of Greek debt by extending the maturities.
This was a landmark summit, he adds, and we were afraid we might not have kept Greece with us.
Hollande: At one point we feared that eurozone would lose one of its members, Greece
9.12am BST
09:12
Alexis Tsipras is heading away from Brussels, and straight into a political battle in Athens:
While the other eurozone leaders can go off for a snooze if they like, #Tsipras has to return to #Greece and pass 6 (?) reform bills by Wed
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tsipras prize for understatement: says implementation will be tough.