In Brussels today held consultations at the highest level over the Greek debt issue and a joint approach to the problem with the massive influx of boat people. The protagonists of the negotiations surrounding Greece just after 9:00 am gone to the table, in preparation for a meeting of the Eurogroup, which is scheduled for 13:00. Tonight’s summit of EU leaders begins where the topic Greece may need to be discussed yet, next to the boat refugees. The summit lasts until tomorrow. NRC follows all the latest news in a live blog.
Cameron not busy beating Greece
Although EU Minister Tusk has just confirmed that the EU leaders from tonight on their summer top in Brussels also will talk about the Greek issue, the British Prime Minister Cameron is currently busy with something else. He goes tonight and tomorrow his fellow government leaders for the first time in detail about his plans in 2017 to hold a referendum on the withdrawal of Britain from the euro (Brexit):
Tusk: consultation may take many hours
EU Minister Donald Tusk has just tweeted that consultations on Greece “many hours” can last. Tusk says it is at that “despite the tragedies of Sophocles this story will have a good end.” The EU president is slightly optimistic about a deal:
Krugman: creditors unreasonable
chief economist and New York Times columnist Paul Krugman has just published a brief column about Greece where he pulls to the creditors, which according to him too much of Greece requirements and be responsible as a ‘Grexit’ comes
And right now it’s the creditor, much more than the Greeks, who keep moving the goalposts. So what is happening? Is the goal to break Syriza? Is it to force Greece into a presumably disastrous default, the encouragement to others? At this point it’s time to stop talking about “Graccident”; if Grexit happens it will be Because The creditor, or at least the IMF, wanted it to happen.
Comparisons with the ancient …
… by journalists on Twitter not shunned. Here a beautiful FT reporter Ferdinando Giugliano:
Yet another euro group on Saturday ?
The Eurogroup today for the third time in eight days together, but that’s not possible. The Greek analyst Yannis Koutsomitis hear rumors about a “last” eurogroup meeting next Saturday:
Meanwhile, the euro group …
You’d think the atmosphere supreme best at the Eurogroup when you see the picture below. From left to right, the Italian Minister for Finance Pier Carlo Padoan, Eurogroup chairman Jeroen Dijsselbloem, IMF Managing Director Christine Lagarde, the Irish Finance Minister Michael Noonan and his French counterpart Michel Sapin.
Photo EPA / Olivier Hoslet
And here an apparently cordial get-together between Lagarde and Greek Finance Minister Varoufakis:
Photo EPA / Olivier Hoslet
Analysts say the two sides closer to each other
Under analysts sounds about a possible solution slightly more optimistic now that the proposal of the ECB, IMF and EU has been leaked:
Pessimism in the Slovak Minister of Finance
Correspondent Stéphane Alonso : troika has tightened things
NRC correspondent Stéphane Alonso has also read the leaked proposal put before us as the differences in context:
” The earlier proposal Tsipras leaned very heavily on tax increases rather than spending cuts, something IMF, ECB and the EU would like to insist. The troika so to see the amended proposal quite rigorous, there are a lot of reforms it put back and tightened other things. “
Because Tsipras has also sent its own proposal at the Eurogroup will make them according Alonso So now further discuss these proposals and the differences between them.
“One factor in the background, is that Greece wants the lenders remediate some of their towering debt, subject to what the lenders are now increasingly shied away because they do not like this. That could well be a last bargaining chip. Though there will probably not something concrete about reducing the debt burden be negotiated.
But I can imagine that Greece could accept this proposal if the government later will declare that there is talk today about further restructuring of the debts of the country. “
Discussion Eurogroup resumes – Dijsselbloem there are still many obstacles
The agreement with the Eurogroup, finance ministers of the euro countries, has resumed Eurogroup President Jeroen Dijsselbloem said prior to the consultation that there are many differences of opinion:.
“The pain lies in many subjects.”
He added that there was no discussion about emergency scenarios.
“We are so busy talking to each other that we have not done it. And I’m not going with the Greeks at the table “
The seating arrangement:
Differences with previous proposal earlier retirement age up bonus abolished later
The proposal that the IMF, ECB and EU now on the table, differs on some key points of an earlier proposal
tricky problem:.
– The retirement age will increase to 67 in 2022. Earlier wanted Greece this would only be in 2036 happen, then came 2025 picture The lenders say so far: 2022
– Athens wanted some islands would be excluded from taxation, but the troika puts them in this proposal.. a red line through it: everybody, including tiny islands should pay the same taxes
Concessions:
– The troika also makes a concession.. The lenders did in 2017 on the provision impoverished pensioners gives a bonus, also known as the EKAS program. The proposal now is that this is the end of December 2019 will be abolished
. – A Greek desire to increase the contribution of retirees to the health of 4 to 6 percent is also included.
compromise
– Taxation of goods: the lenders wanted on some goods employ a top rate of 23 percent VAT. The proposal is to use a tiered system with 6 percent VAT on books, theater and medicines, 13 per cent levy on electricity and “basic food”
-. The tax for large corporations is not 29 percent as Greece wanted but 28 percent. Tsipras is allowed 13 percent tax will raise luxury yachts.
Greece has also sent a proposal
reporter by Bloomberg incidentally also reports that Greece would have sent a proposal to the Eurogroup. That would mean that there will be two proposals on the table.
proposal on the table of lenders
We reported it before, but is now again by The Guardian reported on the basis of an EU diplomat: the lenders – the IMF, ECB and EU – have now sent a unanimous proposal for a Greek debt crisis solution to the eurozone’s finance ministers.
And contrary to earlier rumors that this is a “take it or leave-proposal” would be, now contradicted
Tsipras holds stiff leg
The Financial Times Greece would especially not want to date moving towards a compromise. The pressure is intensified, reports a correspondent of a Greek newspaper:
Rutte: omens are not favorable
Premier Rutte leaves In a reaction to news agency ANP that “omens are not favorable” so far given the course of the consultation this morning.
“But of course I hope that the Eurogroup this afternoon true. We continue, of course, in directing that decisions today are made, and if at all possible by the Eurogroup.” ”
This afternoon at 13.30 there is another meeting of the finance ministers of the euro countries planned, followed by a summit of European leaders where Rutte also will be present.
Tsipras and Lagarde also left
The concert is officially over now even the Greek Prime Minister Tsipras left, report international news agencies Christine Lagarde, head of the IMF also got in the car:.
According to a Spanish reporter in Brussels, Greek officials report that there for the time being is still no agreement:
Talk protagonists seems to end
The summit at the European Commission headquarters seems for the moment passed. Anyway Jeroen Dijsselbloem left the office. There are no signs of a breakthrough.
Austria hopes to deal this afternoon
The Austrian Finance Minister Hans Jorg Shelling says he hopes that the euro group this afternoon to reach an agreement on the Greek debt issue. The Eurogroup, which should begin with a half hour delay at 13.30, however, up 16.00 to get out there today. The finance ministers of the euro countries want does not sit EU leaders in the road, from 16.00 also have a summit in Brussels.
It is possible that there will be discussed further after this afternoon, said Shelling. According to him, next Sunday the outer deadline to reach an agreement. Shelling said it “every minute is difficult” to close a deal.
Eurogroup shifted to 13.30
Since the talks between the European stakeholders and Tsipras are still in progress, the meeting of the euro group is moved according to the Financial Times from 13.00 to 13.30.
ECB sets support for Greek banks not to
European Central Bank (ECB) ceiling for emergency aid to Greek banks Thursday morning not increased further. This was reported by news agency Bloomberg according to insiders.
The ECB increased the past few days several times the amount up to Greek banks can be made available in the form of Emergency Liquidity Assistance (ELA). That support, which is granted with the approval of the ECB by the Bank of Greece, Greek banks should avoid falling over.
The Greek banks are particularly vulnerable, by the continuing uncertainty about the economic future of Greece. Greeks have this year is estimated to have about one fifth of their savings taken away by the banks. Those are therefore completely dependent on emergency support from their central bank.
Talks are under way
Although the ultimatum at 11.00 would have expired, says a European official to FT Mirror reporter that talks are still going on:
‘Creditors give Tsipras ultimatum
The Financial Times and Reuters reported just now that Tsipras at the Negotiations would have received an ultimatum from 11:00 to submit a new proposal to creditors. If Tsipras not the bridge would come, presenting schuldeiders (EU, IMF and ECB) later at 13.00 to the euro group their own proposal. That reads like a “take it or leave IT ‘ultimatum to the Greeks
The tweet from FT reporter Peter Spiegel:.
Tsipras in extremely difficult situation
The Greek Minister of Labour Panos Skourletis said this morning on the Greek television that certain issues in the negotiations for the Greeks “of paramount importance”, such as debt relief, although it is precisely a subject that Europe does not want to talk about.
It shows the great contrast between the needs of Greece and Europe. Even as Prime Tsipras in Brussels a deal manages to conclude, he must only look to sell domestically, wrote our correspondent Marloes de Koning recently NRC:
it already succeeds to reach an agreement with the other eurozone countries and the IMF, state premier Tsipras for no small task to sell to his own party Syriza. The resistance is large and great value on internal party democracy. Part of SYRIZA sees compromise as compromise on principles and therefore by definition negative, something they will vote against in parliament.
Analyst predicts: no deal today
Although the main day of Tuesday, June 30th is getting closer, there need today is not necessarily a agreement between Europe and Greece to be closed. It expects Holger Zschaepitz, an analyst at Royal Bank of Scotland, either, he tweeted this morning. Not later than Saturday, according to him must be some sort of deal:
European exchanges in a minor
The European stock markets are negatively started the new trading day. Uncertainty about a deal with the Greeks did the stock market in Athens open two percent lower, while shares of Greek banks did go into the minus five percent. The AEX opened 0.1 percent lower, while major European stock exchanges in London, Paris and Berlin on average 0.2 percent lower begun the day.
Highlights: Tsipras arrives for consultations
The Greek prime minister Tsipras this morning on arrival at the European Commission headquarters in Brussels
EPA Photo / Julien Warnand
Stark atmosphere in Greek newspapers
The Greek press is the embittered mood: in cartoons, such as the following image is sketched by Greece that the neck is turned over by the little lenient Europe. In Greece is much dissatisfaction with the fact that Europe still refuses to talk about canceling part of the debt of the country.
What is it today
A little brief explanation put where it is in the case of Greece: Athens is in serious financial trouble, and they must look ahead Tuesday (June 30) a solution. On that day, namely the Greeks must repay a loan of 1.6 billion euros to the IMF. Moreover expires on 1 July the European support programs off for Greece. Negotiations on a third package of emergency aid of 7.2 billion euros. That money need the Greeks to repay the IMF loan.
The European institutions (EU, IMF and ECB) requirements in return for new aid to Greece Athens reforms. But the government of Prime Minister Tsipras is afraid of economic loss and finds that his country has already suffered too much under the strict European austerity regime. About the parties at the table trying to reach a compromise.
Consultations started with a delay
The protagonists in the Greek crisis now sit down to the table in Brussels. It is the Greek Prime Tsipras, president of the European Commission, Jean-Claude Juncker, ECB President Mario Draghi, IMF Managing Director Christine Lagarde, Eurogroup chairman Jeroen Dijsselbloem and Klaus Regling, head of the European rescue fund ESM. They submitted yesterday to the beginning of the night concert, but that agreement was terminated because a solution was not close. Brussels is said that the talks “constructive”. The consultations between key players this morning started a bit later than 9:00 because Tsipras was delayed
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