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Greek debt crisis: Tsipras meets mutinous MPs as bailout vote looms - live Greek debt crisis: Tsipras meets mutinous MPs as bailout vote looms - live
(35 minutes later)
11.23am BST11:23
#greece ordered to do reforms never done in italy, france. sunday trading? in germany? in austria? over-counter chemists? anywhere non-uk?
11.21am BST11:21
Traders are betting that Greece will remain in the euro until at least the start of next year, even though the deal isn’t in the bag yet.
Punters See #Grexit Probability Slide to 9% From 50% http://t.co/3u2yhQufoj via @NateLanxon #Greece pic.twitter.com/7MZRw2zC0N
Updated at 11.21am BST
11.12am BST11:12
Here’s a handy breakdown of the Greek bailout plan:
Third bailout for #Greece. @FinancialTimes pic.twitter.com/TRPe1AB28r
11.07am BST11:07
Mark Carney isn’t alone in worrying that the Greek deal is hard to pull off.
Eric Lascelles, chief economist at RBC Global Asset Management, says there is “ample room for error”, as Alexis Tsipras tries to drive through labour market reforms, pension cuts, VAT tax increases, privatizations, higher corporate taxes, a military spending cut and additional IMF involvement in Greece.
In exchange, Greece is set to receive an €86bn euro bailout package that should in theory return the country and its banks to liquidity and solvency. Debt relief will apparently be put on the table for discussion once Greek is demonstrably compliant with the initial conditions.
This development has sharply reduced the risk of a Greek Eurozone exit by a significant margin, but that risk has not vanished altogether (we put it at around 35%, down from 60% over the next year).
But even if Greece clings on, there is “significant risk” that the country stumbles at some later juncture and is unable to recover within the constraints of the Eurozone, Lascelles adds.
Updated at 11.13am BST
10.47am BST10:4710.47am BST10:47
Mark Carney’s deputy, Jon Cunliffe, says the eurozone is under “a lot of strain”, citing the suggestion that Greece could get a “time out” from the euro. Mark Carney’s deputy, Jon Cunliffe, says the eurozone is under “a lot of strain”.
He cites the German suggestion that Greece could get a “time out” from the euro.
BoE deputy governor Cunliffe: "The political will to hold the euro together has been pretty tested by this" #GreeceBoE deputy governor Cunliffe: "The political will to hold the euro together has been pretty tested by this" #Greece
BoE dep gov Cunliffe: msg from weekend was "there is still an awful lot of political capital invested in the euro and will to keep it whole"BoE dep gov Cunliffe: msg from weekend was "there is still an awful lot of political capital invested in the euro and will to keep it whole"
Updated at 10.52am BST
10.45am BST10:4510.45am BST10:45
Bank of England: Greek deal has 'big execution risks'Bank of England: Greek deal has 'big execution risks'
Bank of England governor Mark Carney has just warned MPs that it will be very hard to implement the Greek bailout deal.Bank of England governor Mark Carney has just warned MPs that it will be very hard to implement the Greek bailout deal.
Testifying to the Treasury Committee in Westminster, Carney warned that success will require “Herculean efforts” from all sides.Testifying to the Treasury Committee in Westminster, Carney warned that success will require “Herculean efforts” from all sides.
The scale of structural reforms, fiscal adjustment, privatisations required will be significant.The scale of structural reforms, fiscal adjustment, privatisations required will be significant.
There are big execution risks....and Greece’s debts are not sustainable in their current form, he warns.There are big execution risks....and Greece’s debts are not sustainable in their current form, he warns.
Carney adds that the events of recent months underline the eurozone’s “institutional shortcomings”. That’s not just his view - it’s shared by Europe’s “Four Presidents” (of the European Council, Commission, Parliament and ECB)Carney adds that the events of recent months underline the eurozone’s “institutional shortcomings”. That’s not just his view - it’s shared by Europe’s “Four Presidents” (of the European Council, Commission, Parliament and ECB)
My colleague Andrew Sparrow is live-blogging the whole session here:My colleague Andrew Sparrow is live-blogging the whole session here:
Related: Government shelves fox-hunting vote - Politics liveRelated: Government shelves fox-hunting vote - Politics live
And you can watch the session live here.And you can watch the session live here.
10.20am BST10:2010.20am BST10:20
A nice summary of Athens’ stance today:A nice summary of Athens’ stance today:
Govt's 2 lines of argument: They wanted to kick us out of euro so we're staying in & they wanted a coup so we're not going anywhere #GreeceGovt's 2 lines of argument: They wanted to kick us out of euro so we're staying in & they wanted a coup so we're not going anywhere #Greece
10.10am BST10:1010.10am BST10:10
Photos: Inside today's ECOFINPhotos: Inside today's ECOFIN
Here’s George Osborne making his views known to Alex Stubb and Jeroen Dijsselbloem:Here’s George Osborne making his views known to Alex Stubb and Jeroen Dijsselbloem:
Stubb and Dijsselbloem were in high spirits, as they were joined by Sweden’s Magdalena Andersson.Stubb and Dijsselbloem were in high spirits, as they were joined by Sweden’s Magdalena Andersson.
But how are they doing to get over the difficulties and legal impossibilities, and deliver bridge financing to Greece?But how are they doing to get over the difficulties and legal impossibilities, and deliver bridge financing to Greece?
Updated at 10.10am BSTUpdated at 10.10am BST
10.00am BST10:0010.00am BST10:00
The UK chancellor is now kicking off in Brussels, over the idea that the short-term loans Greece desperately needs could be partly funded with British cash.The UK chancellor is now kicking off in Brussels, over the idea that the short-term loans Greece desperately needs could be partly funded with British cash.
Told that inside #EU finmins meeting, @George_Osborne "furious" at suggestion EU-wide EFSM may be used for #Greece bridge financingTold that inside #EU finmins meeting, @George_Osborne "furious" at suggestion EU-wide EFSM may be used for #Greece bridge financing
9.47am BST09:479.47am BST09:47
Coalition partner gives Tsipras supportCoalition partner gives Tsipras support
Helena SmithHelena Smith
The right-wing Independent Greeks party, the government’s junior partner, has just offered Tsipras some support over the hugely controversial deal he brought back from Brussels.The right-wing Independent Greeks party, the government’s junior partner, has just offered Tsipras some support over the hugely controversial deal he brought back from Brussels.
Panos Kammenos, the party’s leader, has just declared that:Panos Kammenos, the party’s leader, has just declared that:
“We will stand by Alexis Tsipras government.”“We will stand by Alexis Tsipras government.”
Many of Kammenos’s MPs have said the new agreement, as outlined in the marathon overnight meeting in Brussels, is much harsher than the original one the coalition had endorsed last weekend and, as such, is unacceptable.Many of Kammenos’s MPs have said the new agreement, as outlined in the marathon overnight meeting in Brussels, is much harsher than the original one the coalition had endorsed last weekend and, as such, is unacceptable.
But Kammenos is still backing the PM, telling reporters that:But Kammenos is still backing the PM, telling reporters that:
“It is clear to all of Europe that yesterday night a coup happened in the heart of Europe.“It is clear to all of Europe that yesterday night a coup happened in the heart of Europe.
The PM was blackmailed into signing a very different agreement. And this coup is continuing here in Greece where people want the government to fall.”The PM was blackmailed into signing a very different agreement. And this coup is continuing here in Greece where people want the government to fall.”
#now @PanosKammenos (ANEL) "Special purpose national government is what is wanted by the Coup masterminds" #Greece#now @PanosKammenos (ANEL) "Special purpose national government is what is wanted by the Coup masterminds" #Greece
Whatever the outcome, Kammenos, who is also defence minister and clearly enjoying power, has said he will continue backing the government – but only if it remains a two-party coalition which, increasingly, does not look the case.Whatever the outcome, Kammenos, who is also defence minister and clearly enjoying power, has said he will continue backing the government – but only if it remains a two-party coalition which, increasingly, does not look the case.
Updated at 10.12am BSTUpdated at 10.12am BST
9.30am BST09:309.30am BST09:30
Tsipras could reshuffle cabinetTsipras could reshuffle cabinet
Helena SmithHelena Smith
Over in Athens governing Syriza party sources are not ruling out a reshuffle taking place as early as today, following Tsipras’s meeting with his party.Over in Athens governing Syriza party sources are not ruling out a reshuffle taking place as early as today, following Tsipras’s meeting with his party.
Our correspondent Helena Smith reports.Our correspondent Helena Smith reports.
Such is prime minister Alexis Tsipras’ determination to clear the political terrain, that speculation is mounting a cabinet reshuffle could take place today. The tough stance of energy minister and leading defector, Panagiotis Lafazanis, has helped focus minds, say insiders.Such is prime minister Alexis Tsipras’ determination to clear the political terrain, that speculation is mounting a cabinet reshuffle could take place today. The tough stance of energy minister and leading defector, Panagiotis Lafazanis, has helped focus minds, say insiders.
One told me:One told me:
“The preference would be for a reshuffle after the vote but nothing can now be ruled out.”“The preference would be for a reshuffle after the vote but nothing can now be ruled out.”
Among the scenarios being considered is the formation of a cross-party government of special purpose that would help lift the heavy weight of not only pushing reforms through parliament but implementing them too.Among the scenarios being considered is the formation of a cross-party government of special purpose that would help lift the heavy weight of not only pushing reforms through parliament but implementing them too.
The radical left party is increasingly fighting a battle for survival in government with cadres saying Syriza’s overall aim is not to go down as a “left parenthesis” in power.The radical left party is increasingly fighting a battle for survival in government with cadres saying Syriza’s overall aim is not to go down as a “left parenthesis” in power.
“Everything will be judged with the enforcement of real government policy which will not only be the agreement,” the interior minister Nikos Voutsis said this morning.“Everything will be judged with the enforcement of real government policy which will not only be the agreement,” the interior minister Nikos Voutsis said this morning.
Calling the proposed deal “very difficult, very bad,” the minister said the real issue the government faced would be finding and enacting policies that could have an ameliorating affect on the painful consequences the measures were likely to have socially.Calling the proposed deal “very difficult, very bad,” the minister said the real issue the government faced would be finding and enacting policies that could have an ameliorating affect on the painful consequences the measures were likely to have socially.
“Social counter-measures must be found which will give hope to people.”“Social counter-measures must be found which will give hope to people.”
9.22am BST09:229.22am BST09:22
George Osborne: UK won't help fund GreeceGeorge Osborne: UK won't help fund Greece
Britain won’t contribute any money to the Greek bailout, declared UK chancellor George Osborne as he arrived at today’s meeting of EU finance ministers in Brussels.Britain won’t contribute any money to the Greek bailout, declared UK chancellor George Osborne as he arrived at today’s meeting of EU finance ministers in Brussels.
He told reporters:He told reporters:
Britain is not in the euro, so the idea that British taxpayers will be on the line for this Greek deal is a complete non-starter.Britain is not in the euro, so the idea that British taxpayers will be on the line for this Greek deal is a complete non-starter.
The eurozone needs to foot its own bill.The eurozone needs to foot its own bill.
As explained earlier, Britain is adamant that it won’t let the European Financial Stability Mechanism (EFSM) be used to underwrite short-term loans to Greece (as this would break an earlier deal between the UK and Brussels).As explained earlier, Britain is adamant that it won’t let the European Financial Stability Mechanism (EFSM) be used to underwrite short-term loans to Greece (as this would break an earlier deal between the UK and Brussels).
So Osborne’s taking a tough line, and he wants us to know it.So Osborne’s taking a tough line, and he wants us to know it.
And if the idea really isn’t possible, it won’t do the chancellor any harm to claim a victory on away soil against the eurocrats (especially if it really isn’t legally possible anyway).And if the idea really isn’t possible, it won’t do the chancellor any harm to claim a victory on away soil against the eurocrats (especially if it really isn’t legally possible anyway).
9.12am BST09:129.12am BST09:12
Finland’s finance minister Alex Stubb agrees that bridge financing is a problem, as eurozone countries can’t just hand over funds to Greece without ‘conditionality’Finland’s finance minister Alex Stubb agrees that bridge financing is a problem, as eurozone countries can’t just hand over funds to Greece without ‘conditionality’
But it is probably impossible to back down at this stage, so some kind of agreement will be found, Stubb replies. Perhaps bilateral loans to Greece?But it is probably impossible to back down at this stage, so some kind of agreement will be found, Stubb replies. Perhaps bilateral loans to Greece?
9.10am BST09:109.10am BST09:10
Europe is battling to find a way to provide ‘bridge financing’ to help Greece meet its short-term funding demands, while a third bailout is agreed.Europe is battling to find a way to provide ‘bridge financing’ to help Greece meet its short-term funding demands, while a third bailout is agreed.
Arriving at today’s ECOFIN meeting, Eurogroup president Jeroen Dijsselbloem said officials are still working on a way to help Athens meet its repayments to ECB this summer, starting on July 20.Arriving at today’s ECOFIN meeting, Eurogroup president Jeroen Dijsselbloem said officials are still working on a way to help Athens meet its repayments to ECB this summer, starting on July 20.
What’s holding it up?What’s holding it up?
We are looking at all the instruments and funds that we could use, Dijsselbloem replies.We are looking at all the instruments and funds that we could use, Dijsselbloem replies.
They all seem to have disadvantages or impossibilities or legal objections, so we’re still working on it.They all seem to have disadvantages or impossibilities or legal objections, so we’re still working on it.
Updated at 9.10am BSTUpdated at 9.10am BST
9.06am BST09:069.06am BST09:06
Syriza spokesman: MPs should not join the "coup"Syriza spokesman: MPs should not join the "coup"
Syriza parliamentary group spokesman Nikos Filis has urged MPs to support Tsipras -- warning that they would otherwise be allying with Greece’s enemies in Brussels.Syriza parliamentary group spokesman Nikos Filis has urged MPs to support Tsipras -- warning that they would otherwise be allying with Greece’s enemies in Brussels.
He told reporters:He told reporters:
“Wasn’t what happened in Brussels a coup? What happened? Didn’t they say, either this deal or we take Greeks’ deposits and the banks go bankrupt? The government came under threat from economic and political forces that do not forgive the Greek people for making a different choice.“Wasn’t what happened in Brussels a coup? What happened? Didn’t they say, either this deal or we take Greeks’ deposits and the banks go bankrupt? The government came under threat from economic and political forces that do not forgive the Greek people for making a different choice.
I think that, often, we facilitate these plans. We cannot end with a left interregnum with the complicity of people of the left.”I think that, often, we facilitate these plans. We cannot end with a left interregnum with the complicity of people of the left.”
8.56am BST08:568.56am BST08:56
Finland’s finance minister tweets that he’s still hopeful of a happy ending to the crisis:Finland’s finance minister tweets that he’s still hopeful of a happy ending to the crisis:
After the @epp meeting time for a short #Ecofin. It's been a tough few weeks, but I remain optimistic that solutions will be found.After the @epp meeting time for a short #Ecofin. It's been a tough few weeks, but I remain optimistic that solutions will be found.
8.40am BST08:408.40am BST08:40
European stock markets are lacklustre in early trading.European stock markets are lacklustre in early trading.
The initial relief that Grexit had been avoided has tailed away, as investors consider the political hurdles ahead.The initial relief that Grexit had been avoided has tailed away, as investors consider the political hurdles ahead.
Connor Campbell, financial analyst at Spreadex, explains:Connor Campbell, financial analyst at Spreadex, explains:
Fresh from his mental ‘crucifixion’ at the EU summit, Alexis Tsipras has another few tortuous days ahead of him as he tries to stem a growing left-wing rebellion in his own party, all in order to pass legislation by Wednesday that will go some way to unlocking a third bailout.Fresh from his mental ‘crucifixion’ at the EU summit, Alexis Tsipras has another few tortuous days ahead of him as he tries to stem a growing left-wing rebellion in his own party, all in order to pass legislation by Wednesday that will go some way to unlocking a third bailout.
Some are already speculating that inter-party issues over the weekend’s Greek deal could lead to a much-touted, and no doubt Germany pleasing, Tsipras resignation.Some are already speculating that inter-party issues over the weekend’s Greek deal could lead to a much-touted, and no doubt Germany pleasing, Tsipras resignation.
8.32am BST08:328.32am BST08:32
UK chancellor George Osborne is expected to fight efforts to make Britain contribute to the Greek bailout, at today’s ECOFIN meeting of finance ministers.UK chancellor George Osborne is expected to fight efforts to make Britain contribute to the Greek bailout, at today’s ECOFIN meeting of finance ministers.
The British government isn’t impressed that the European Financial Stabilisation Mechanism (EFSM) would underwrite the deal. That would break an agreement that the EFSM (funded by all 28 EU members) wouldn’t fund eurozone bailouts again.The British government isn’t impressed that the European Financial Stabilisation Mechanism (EFSM) would underwrite the deal. That would break an agreement that the EFSM (funded by all 28 EU members) wouldn’t fund eurozone bailouts again.
Here’s the story:Here’s the story:
Related: Greece crisis: Osborne seeks to block use of British-backed fund in bailoutRelated: Greece crisis: Osborne seeks to block use of British-backed fund in bailout
8.15am BST08:158.15am BST08:15
Greek minister urges Tsipras to take back bailout dealGreek minister urges Tsipras to take back bailout deal
In a fresh sign of political turmoil in Athens, an influential Greek minister has demanded that Alexis Tsipras withdraws the bailout deal agreed in Brussels.In a fresh sign of political turmoil in Athens, an influential Greek minister has demanded that Alexis Tsipras withdraws the bailout deal agreed in Brussels.
Energy minister Panagiotis Lafazanis, who leads Syriza’s Left Platform, has released a statement damming the agreement as “unacceptable”.Energy minister Panagiotis Lafazanis, who leads Syriza’s Left Platform, has released a statement damming the agreement as “unacceptable”.
Lafazanis said the deal “cancels the popular mandate and the proud ‘NO’ of the Greek people in the referendum”.Lafazanis said the deal “cancels the popular mandate and the proud ‘NO’ of the Greek people in the referendum”.
“Our so-called partners led by the German establishment, behaved towards our country as being their colony and they are nothing more than brutal blackmailers and financial assassins.”“Our so-called partners led by the German establishment, behaved towards our country as being their colony and they are nothing more than brutal blackmailers and financial assassins.”
(thanks to Enikos for the quotes)(thanks to Enikos for the quotes)
#Greece EnergyMin Lafazanis says govt should take back agreement with creditors#Greece EnergyMin Lafazanis says govt should take back agreement with creditors
Lafazanis was already on thin ice after abstaining in Friday night’s vote on the Greek government’s proposals to its creditors.Lafazanis was already on thin ice after abstaining in Friday night’s vote on the Greek government’s proposals to its creditors.
And the Left Platform’s position will be crucial in determining whether Tsipras holds onto power.And the Left Platform’s position will be crucial in determining whether Tsipras holds onto power.
As Bloomberg TV’s Matt Campbell (in Athens today) points out, few people want to take bets on whether Tsipras’s government survives for long.As Bloomberg TV’s Matt Campbell (in Athens today) points out, few people want to take bets on whether Tsipras’s government survives for long.
Updated at 8.17am BSTUpdated at 8.17am BST
7.55am BST07:557.55am BST07:55
Syriza’s own parliamentary spokesman has described the deal forced on Greece at the Euro Summit as a “coup”, according to Reuters:Syriza’s own parliamentary spokesman has described the deal forced on Greece at the Euro Summit as a “coup”, according to Reuters:
#Greece #Syriza parliamentary spokesman: Lawmakers will not overthrow mandate given by voters in Jan; There was a "coup" in #Brussels 1/2#Greece #Syriza parliamentary spokesman: Lawmakers will not overthrow mandate given by voters in Jan; There was a "coup" in #Brussels 1/2
#Greece #Syriza parliamentary spokesman: Most important thing is to give response to "coup"; Govt of the left must not fall #EuroSummit#Greece #Syriza parliamentary spokesman: Most important thing is to give response to "coup"; Govt of the left must not fall #EuroSummit
7.50am BST07:507.50am BST07:50
Introduction: Tsipras faces furious MPsIntroduction: Tsipras faces furious MPs
Good morning, and welcome to our rolling coverage of Greece’s financial crisis.Good morning, and welcome to our rolling coverage of Greece’s financial crisis.
Political tensions are bubbling away in Athens this morning after the Greek government caved in at last weekend’s Brussels summit in the hope of receiving a third bailout deal.Political tensions are bubbling away in Athens this morning after the Greek government caved in at last weekend’s Brussels summit in the hope of receiving a third bailout deal.
Alexis Tsipras’s decision to accept even deeper austerity, sweeping economic reforms, and the sequestering of €50bn of prime Greek assets for privatisation has enraged many in his own Syriza party.Alexis Tsipras’s decision to accept even deeper austerity, sweeping economic reforms, and the sequestering of €50bn of prime Greek assets for privatisation has enraged many in his own Syriza party.
The prime minister is meeting his MPs this morning, with speculation swirling that he could possibly resign soon if there is a major rebellion over the measures forced on Greece at the Euro Summit.The prime minister is meeting his MPs this morning, with speculation swirling that he could possibly resign soon if there is a major rebellion over the measures forced on Greece at the Euro Summit.
syriza political cttee meets at 9am as tsipras's biggest battle starts with opposition w/in the party. #GreekCrisissyriza political cttee meets at 9am as tsipras's biggest battle starts with opposition w/in the party. #GreekCrisis
Growing rumours that #Tsipras may resign this morning along with the whole SYRIZA party. Technocrat gov to come in. #GreeceCrisisGrowing rumours that #Tsipras may resign this morning along with the whole SYRIZA party. Technocrat gov to come in. #GreeceCrisis
The deal forced on Tsipras during his night of pain in Brussels compels Greece to pass legislation by Wednesday night.The deal forced on Tsipras during his night of pain in Brussels compels Greece to pass legislation by Wednesday night.
Although some opposition parties will probably back the plan, the Greek leader’s authority could be badly dented if his own MPs refuse to approve measures which they campaigned against.Although some opposition parties will probably back the plan, the Greek leader’s authority could be badly dented if his own MPs refuse to approve measures which they campaigned against.
While Tsipras locks horns with his leftwingers, European finance ministers will be meeting in Brussels for an ECOFIN meeting later this morning.While Tsipras locks horns with his leftwingers, European finance ministers will be meeting in Brussels for an ECOFIN meeting later this morning.
And in the UK, Bank of England governor Mark Carney will face questions over Greece when he testifies at parliament.And in the UK, Bank of England governor Mark Carney will face questions over Greece when he testifies at parliament.
Related: Treasury select committee to question Carney on Greek crisis and interest ratesRelated: Treasury select committee to question Carney on Greek crisis and interest rates
We’ll be tracking all the main events through the day....We’ll be tracking all the main events through the day....