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| Version 30 | Version 31 |
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| Eurozone finance ministers agree to third Greek bailout - as it happened | Eurozone finance ministers agree to third Greek bailout - as it happened |
| (about 1 month later) | |
| 11.39pm BST | 11.39pm BST |
| 23:39 | 23:39 |
| And finally, over to Ian Traynor in Brussels to sum up tonight’s news: | And finally, over to Ian Traynor in Brussels to sum up tonight’s news: |
| Greece clinched a three-year bailout worth €86bn (£60bn) after parliamentarians in Athens backed the deal, and Germany backed down on its opposition to the third rescue of the bankrupt country in five years. | Greece clinched a three-year bailout worth €86bn (£60bn) after parliamentarians in Athens backed the deal, and Germany backed down on its opposition to the third rescue of the bankrupt country in five years. |
| A meeting of eurozone finance ministers in Brussels representing the country’s main creditors agreed to launch the new bailout with €26bn being disbursed next week following six months of bitter recrimination that almost saw the country, under the leftwing government of Alexis Tsipras, becoming the first to exit the single currency. | A meeting of eurozone finance ministers in Brussels representing the country’s main creditors agreed to launch the new bailout with €26bn being disbursed next week following six months of bitter recrimination that almost saw the country, under the leftwing government of Alexis Tsipras, becoming the first to exit the single currency. |
| The meeting was upbeat about finalising the bailout terms after Tsipras, secured approval from MPs for a huge package of legislation on Friday morning. The vote committed the indebted country to radical economic and fiscal reforms needed to secure the rescue money. | The meeting was upbeat about finalising the bailout terms after Tsipras, secured approval from MPs for a huge package of legislation on Friday morning. The vote committed the indebted country to radical economic and fiscal reforms needed to secure the rescue money. |
| Wolfgang Schäuble, the German finance minister and critic of the proposed new deal, toned down his reservations at a meeting of his eurozone peers in Brussels several hours after the Athens vote. | Wolfgang Schäuble, the German finance minister and critic of the proposed new deal, toned down his reservations at a meeting of his eurozone peers in Brussels several hours after the Athens vote. |
| Over the past week, Berlin has consistently argued against being rushed into a new bailout, preferring to award Greece a new bridging loan to pay off a debt payment of €3.2bn due to the European Central Bank next week. But the temporary loans scenario was barely mentioned by finance ministers. | Over the past week, Berlin has consistently argued against being rushed into a new bailout, preferring to award Greece a new bridging loan to pay off a debt payment of €3.2bn due to the European Central Bank next week. But the temporary loans scenario was barely mentioned by finance ministers. |
| “The past six months have been difficult. We have looked into the abyss,” said Jean-Claude Juncker, the president of the European commission. “But today the message of today’s Eurogroup is loud and clear: on this basis, Greece is and will irreversibly remain a member of the Euro area.” | “The past six months have been difficult. We have looked into the abyss,” said Jean-Claude Juncker, the president of the European commission. “But today the message of today’s Eurogroup is loud and clear: on this basis, Greece is and will irreversibly remain a member of the Euro area.” |
| In an abrupt change of tone, the leaders paid tribute to Tsipras, who could only win the vote on the new bailout with the support of the opposition and by splitting his leftwing Syriza movement. It is now likely that Tsipras will call early elections and trigger a realignment of Greek politics...... | In an abrupt change of tone, the leaders paid tribute to Tsipras, who could only win the vote on the new bailout with the support of the opposition and by splitting his leftwing Syriza movement. It is now likely that Tsipras will call early elections and trigger a realignment of Greek politics...... |
| More here: | More here: |
| Related: Greece secures third bailout after Germany backs down on opposition | Related: Greece secures third bailout after Germany backs down on opposition |
| And that is a good moment to stop for the night. Thanks for reading and commenting, See you all next week. GW | And that is a good moment to stop for the night. Thanks for reading and commenting, See you all next week. GW |
| 11.22pm BST | 11.22pm BST |
| 23:22 | 23:22 |
| Tonight’s deal faces a trio of major obstacles - one political, one economic, and one financial. | Tonight’s deal faces a trio of major obstacles - one political, one economic, and one financial. |
| The Wall Street Journal explains: | The Wall Street Journal explains: |
| Large-scale defections from Syriza party lawmakers during a parliamentary vote on the agreement Friday morning indicate that Prime Minister Alexis Tsipas may soon call new elections. | Large-scale defections from Syriza party lawmakers during a parliamentary vote on the agreement Friday morning indicate that Prime Minister Alexis Tsipas may soon call new elections. |
| That could once again delay the implementation of the austerity measures mandated by the deal as well as action by the other eurozone countries to lower Greece’s debt load. | That could once again delay the implementation of the austerity measures mandated by the deal as well as action by the other eurozone countries to lower Greece’s debt load. |
| At the same time, the steep budget cuts Greece has to implement in return for the new bailout are bound to cause more pain for its economy and citizens. The rescue program foresees a 2.3% contraction of Greece’s gross domestic product this year, followed by a 1.3% decrease next year. | At the same time, the steep budget cuts Greece has to implement in return for the new bailout are bound to cause more pain for its economy and citizens. The rescue program foresees a 2.3% contraction of Greece’s gross domestic product this year, followed by a 1.3% decrease next year. |
| The deal also expects that shareholders, junior creditors and senior bondholders in Greece’s battered banks will take losses before the lenders will be recapitalized. That will likely cause further uncertainty for a financial sector already reeling from capital controls that are unlikely to be lifted anytime soon. | The deal also expects that shareholders, junior creditors and senior bondholders in Greece’s battered banks will take losses before the lenders will be recapitalized. That will likely cause further uncertainty for a financial sector already reeling from capital controls that are unlikely to be lifted anytime soon. |
| 11.16pm BST | 11.16pm BST |
| 23:16 | 23:16 |
| Greece an irreversible member of euro, says Juncker after Eurogroup nod http://t.co/F6GGec0tkh pic.twitter.com/SzSdPW9RdB | Greece an irreversible member of euro, says Juncker after Eurogroup nod http://t.co/F6GGec0tkh pic.twitter.com/SzSdPW9RdB |
| 11.16pm BST | 11.16pm BST |
| 23:16 | 23:16 |
| European Commission President Jean-Claude Juncker must be relieved that the threat of Greece leaving the eurozone on his watch has receded. | European Commission President Jean-Claude Juncker must be relieved that the threat of Greece leaving the eurozone on his watch has receded. |
| Here’s his reaction to tonight’s agreement. | Here’s his reaction to tonight’s agreement. |
| The past six months have been difficult. They have tested the patience of policy-makers and they have tested the patience of our citizens even more. Together, we have looked into the abyss. | The past six months have been difficult. They have tested the patience of policy-makers and they have tested the patience of our citizens even more. Together, we have looked into the abyss. |
| But today, I am glad to say that all sides have respected their commitments,” | But today, I am glad to say that all sides have respected their commitments,” |
| 10.51pm BST | 10.51pm BST |
| 22:51 | 22:51 |
| More reaction to tonight’s agreement: | More reaction to tonight’s agreement: |
| #greece no phony victimhood from tsakalotos: 'in end, how good this deal is depends on how Gk society, state, economy, social actors respond | #greece no phony victimhood from tsakalotos: 'in end, how good this deal is depends on how Gk society, state, economy, social actors respond |
| Shorter Lagarde: no deal without debt relief, redux. | Shorter Lagarde: no deal without debt relief, redux. |
| Hollande says Eurogroup deal on Greece is proof EU is capable of going forward; an achievement for Greece which has made expected efforts | Hollande says Eurogroup deal on Greece is proof EU is capable of going forward; an achievement for Greece which has made expected efforts |
| Updated | Updated |
| at 10.52pm BST | at 10.52pm BST |
| 10.46pm BST | 10.46pm BST |
| 22:46 | 22:46 |
| Summary: what was agreed tonight | Summary: what was agreed tonight |
| Tonight’s deal doesn’t mean the third Greek bailout is totally “in the bag”. Some national parliaments need to give their approval - including Germany’s Bundestag next week. | Tonight’s deal doesn’t mean the third Greek bailout is totally “in the bag”. Some national parliaments need to give their approval - including Germany’s Bundestag next week. |
| But short of a major shock, the €86bn bailout package is finally a done deal, after nearly seven months of wrangling, deadlock and drama. | But short of a major shock, the €86bn bailout package is finally a done deal, after nearly seven months of wrangling, deadlock and drama. |
| So what are the key points of the deal? | So what are the key points of the deal? |
| Well, the Memorandum of Understanding (MoU) between Athens and its creditors includes four key elements -- including some very stretching budget targets, unpopular economic reforms. including to pensions,, and sweeping changes to a banking sector that has been battered this year. | Well, the Memorandum of Understanding (MoU) between Athens and its creditors includes four key elements -- including some very stretching budget targets, unpopular economic reforms. including to pensions,, and sweeping changes to a banking sector that has been battered this year. |
| Or, in the eurogroup’s words: | Or, in the eurogroup’s words: |
| There is also a new pledge to privatise Greek state assets, through a new controversial fund that is designed to raise up to €50bn. | There is also a new pledge to privatise Greek state assets, through a new controversial fund that is designed to raise up to €50bn. |
| In return, Greece gets the promise of new measures to guarantee debt sustainability. Prime minister Tsipras has repeatedly hailed that commitment as a (rare) key victory. | In return, Greece gets the promise of new measures to guarantee debt sustainability. Prime minister Tsipras has repeatedly hailed that commitment as a (rare) key victory. |
| But Europe has not committed to actually cutting Greece’s debt mountain. Instead, it argues that: | But Europe has not committed to actually cutting Greece’s debt mountain. Instead, it argues that: |
| debt sustainability can be achieved through a far-reaching and credible reform programme and additional debt related measures without nominal haircuts. | debt sustainability can be achieved through a far-reaching and credible reform programme and additional debt related measures without nominal haircuts. |
| In other words, by giving Greece longer to repay its existing loans and cutting the interest rates charged. | In other words, by giving Greece longer to repay its existing loans and cutting the interest rates charged. |
| Although ministers have also dangled a carrot: | Although ministers have also dangled a carrot: |
| If necessary, the Eurogroup stands ready to consider, possible additional measures to ensure that Greece’s gross financing needs remain at a sustainable level. | If necessary, the Eurogroup stands ready to consider, possible additional measures to ensure that Greece’s gross financing needs remain at a sustainable level. |
| And debt sustainability is vital, to get the IMF on board (as well as to help Greece). | And debt sustainability is vital, to get the IMF on board (as well as to help Greece). |
| But after two Greek bailouts, the Fund hasn’t yet committed to a third. First, it wants to see proof that Greece has implemented all the fiscal, structural and financial sector reforms on the table. Plus an agreement on possible debt relief to ensure debt sustainability. | But after two Greek bailouts, the Fund hasn’t yet committed to a third. First, it wants to see proof that Greece has implemented all the fiscal, structural and financial sector reforms on the table. Plus an agreement on possible debt relief to ensure debt sustainability. |
| It could be a dramatic autumn..... | It could be a dramatic autumn..... |
| Main results of today’s #Eurogroup meeting on #Greece http://t.co/cu8tLiq6Qd | Main results of today’s #Eurogroup meeting on #Greece http://t.co/cu8tLiq6Qd |
| 10.05pm BST | 10.05pm BST |
| 22:05 | 22:05 |
| The success of tonight’s deal depends on Greece’s willingness to embrace tough reforms, Tsakalotos added. | The success of tonight’s deal depends on Greece’s willingness to embrace tough reforms, Tsakalotos added. |
| 10.01pm BST | 10.01pm BST |
| 22:01 | 22:01 |
| Greece’s finance minister, Euclid Tsakalotos must be cream-crackered this evening. | Greece’s finance minister, Euclid Tsakalotos must be cream-crackered this evening. |
| He spent last night in the Athens parliament, as MPs argued over whether to approve the bailout programme. No sooner was that vote over than he was preparing for the eurogroup meeting, which began after lunch in Brussels. | He spent last night in the Athens parliament, as MPs argued over whether to approve the bailout programme. No sooner was that vote over than he was preparing for the eurogroup meeting, which began after lunch in Brussels. |
| But he’s still managed to raise the energy to speak with reporters tonight, and argue that tonight’s deal can help Greece recover. | But he’s still managed to raise the energy to speak with reporters tonight, and argue that tonight’s deal can help Greece recover. |
| Tsakalotos explained: | Tsakalotos explained: |
| “It takes Greece forward in the sense that the financial system should be much more stable from now onwards. There is a promise of recapitalisation of the banks, without any of the depositors having to bail in or anything to worry about.” | “It takes Greece forward in the sense that the financial system should be much more stable from now onwards. There is a promise of recapitalisation of the banks, without any of the depositors having to bail in or anything to worry about.” |
| 9.53pm BST | 9.53pm BST |
| 21:53 | 21:53 |
| If you’ve been following this crisis, you’ll already know that Greece must implement sweeping economic changes in return for this third package of loans. | If you’ve been following this crisis, you’ll already know that Greece must implement sweeping economic changes in return for this third package of loans. |
| The broad scope of the plan was agreed a month ago, at the summit of eurozone leaders. | The broad scope of the plan was agreed a month ago, at the summit of eurozone leaders. |
| And as we reported earlier this week, the final deal includes “major reforms of health, welfare, pensions and taxation systems, alongside more ambitious privatisation schemes.” | And as we reported earlier this week, the final deal includes “major reforms of health, welfare, pensions and taxation systems, alongside more ambitious privatisation schemes.” |
| It also awards the troika decisive influence over reforms to Greece’s banks, which have suffered major capital outflows this year, culminating in capital controls since late June. | It also awards the troika decisive influence over reforms to Greece’s banks, which have suffered major capital outflows this year, culminating in capital controls since late June. |
| Some tweaks have been agreed tonight, but this story from Wednesday night still gives the picture: | Some tweaks have been agreed tonight, but this story from Wednesday night still gives the picture: |
| Related: Greek bailout terms to give eurozone vast powers over policymaking | Related: Greek bailout terms to give eurozone vast powers over policymaking |
| 9.35pm BST | 9.35pm BST |
| 21:35 | 21:35 |
| Like Dijsselbloem, Schaeuble plays down potential political instability in #Greece. Focuses on broad parliament majority, not SYRIZA rebels | Like Dijsselbloem, Schaeuble plays down potential political instability in #Greece. Focuses on broad parliament majority, not SYRIZA rebels |
| 9.35pm BST | 9.35pm BST |
| 21:35 | 21:35 |
| Schäuble denies that the political instability in Greece could doom tonight’s deal. | Schäuble denies that the political instability in Greece could doom tonight’s deal. |
| He points out that prime minister Alexis Tsipras has fought hard to get MPs to approve it: | He points out that prime minister Alexis Tsipras has fought hard to get MPs to approve it: |
| #Schäuble: When asked the 'trust' question - says, did you not see how #Tsipras has fought in his own parliament for this prog. #Eurogroup | #Schäuble: When asked the 'trust' question - says, did you not see how #Tsipras has fought in his own parliament for this prog. #Eurogroup |
| (The Greek parliament gave its seal of approval to the deal early this morning - but Tsipras suffered a significant rebellion among his own MPs). | (The Greek parliament gave its seal of approval to the deal early this morning - but Tsipras suffered a significant rebellion among his own MPs). |
| 9.30pm BST | 9.30pm BST |
| 21:30 | 21:30 |
| More Schaeuble: Now Greece is making serious effort to embark on a new course "Good day. Good result" #Greece pic.twitter.com/nucS7WyRSU | More Schaeuble: Now Greece is making serious effort to embark on a new course "Good day. Good result" #Greece pic.twitter.com/nucS7WyRSU |