After the failed meeting last week talking Eurogroup again today about the Greek debt crisis. The finance ministers come together around lunchtime, later in the day following a slotted Eurotop where the political leaders of the eurozone countries discuss the issue. The meeting last Thursday ended without agreement on Greece. Athens may end this month fail to meet its payment obligations. So the time is running out to reach a solution. But there are so many deadlines have passed. Would the countries still going to work to reach agreement? Follow the developments live today.
Updates by Casper van der Veen
Later this week a meeting of the eurogroup
The euro group meets later this week reconvene to discuss the Greek debt crisis. Valdis Dombrovskis announced that the European Commission just on Twitter:
Readers Question 3 on reversal of measures
Question: How will the lenders to the reversal of support measures from the previous round? I read nothing about and it does the question arise when how reliable are any new commitments
ANSWER:
“This kind of support plan is always a form of solidified skepticism. Therefore also amounts not paid at once, but in installments. The 7.2 billion to support what it is about is about (last) term of the current support plan. Assume that a compromise, as this week is achieved, also a term. For example, until the end of this year. That means that even possible with such a compromise, following Greek crises if it appears that there with the promised reforms made too little progress. “
Meeting Eurogroup past
The meeting of the eurogroup on the Greek debt crisis has now passed. That report different participants. The proposals of Athens are still under consideration:
Our correspondent in Brussels Stéphane Alonso says it is not a good sign that the meeting of the Eurogroup so soon over. It is still questionable whether the European Summit continues tonight
Readers Question 2 on heading towards a ‘Grexit’
NRC economics editor Maarten Schinkel answered your questions. A question of Jan van Oort: Why is one option increasingly gone into the background, namely that of the eurozone countries triggered Grexit? Ie determine that the misery has lasted too long, that too much money is burned, the damper on the EU economy has grown too large and they no longer live with the uncertainty blieft
Answer:
This makes the whole event even so unreal, there is no procedure for leaving the monetary union. A country would unilaterally be able to pick and place the others with a fait accompli. But conversely, sending away by the other participants in the euro from a euro country, is not possible if it abides by all treaty provisions. The corresponding frustrations are understandable,.
Polish PM: take a lot of cash when you go to Greece
All Poland in the coming time to go to Greece, would be wise to take “a large amount of cash” with. This opinion gave the Polish Prime Minister Ewa Kopacz today her compatriots:
“If you go to Greece on holiday, keep the situation there than keep an eye on, because that will are very dynamic. Trust please not on your debit cards or ATMs on the spot, but take a large amount of cash with “
The past few days have Greeks huge amounts of money included for fear of the financial future of the country. To be a real bank run to prevent the Greek government should be possible in the future to set a limit to what Greeks can record. Lately warned Greek banks several times that they were unsure if they could remain open.
Readers Question 1 on Greek exit
NRC economics editor Maarten Schinkel answered your questions. A question of Demet Yazilitas All the advantages and disadvantages of a Greek exit in a row, it just is not better to have a union without Greece with countries to fulfill their agreements on debt?
ANSWER
So put yes. But playing more. There are also geopolitical reasons to keep Greece in there: the strategic location of the country, the risk of a failed state, a possible extension of the Russian sphere of influence and, indeed, the idea of European integration is an irreversible process. Recall that the EU after the war not only to established economic reasons but also for political reasons. That are difficult to express in money, but that’s essentially where all those meetings in Brussels now proceed.
Check Dijsselbloem
Jeroen Dijsselbloem, chairman of the euro group arrives In Brussels. Photo AFP / John Thys
National Bank Athens
The National Bank in Athens. Reuters / Marko Djurica
Wherever it comes again?
Just one short summary that matters today: Athens later this month must repay 1.7 billion euros to the IMF. On 1 July, the period runs from the second aid package to Greece. There is for 7.2 billion euros in new aid ready, but for that the country’s troika – the IMF, ECB and EU – do meet requirements.
And those conditions, there is the already months. The Troika wants Greece to intervene in the pensions and substantial cuts, but Greece considers that it already has a lot of cuts and severely affected by the euro crisis. Athens pensions are the red line, writes NRC correspondent Stéphane Alonso in today nrc.next
The leftist ruling party Syriza won there in January with the election. Cranking it is political suicide. Moreover, these pensions in a country with 27 percent unemployment (and more than 50 percent among young people) pretty much the last source of income. The strongly felt solidarity of unemployed youth with their grandfathers and grandmothers is not selfless; it is tough self-interest.
Many economists agree that Greece has suffered heavy cutbacks and find that the lenders would have to clean up the debt of Greece in exchange for reforms. But that is sensitive, government leaders have promised in their own country that “every euro is stopped in Greece, comes back.”
Still, it would be wise, wrote an economics professor Bas Jacobs last weekend in NRC
Reckless debtors exist only with reckless creditors. Euro countries should therefore accept inevitable losses. Debts should be reduced by extending the terms and lower interest rates. And economic growth should return to Greece. Euro countries should therefore abandon their austerity fixation, as the Greeks abandon their political resistance to reform.
Dijsselbloem tempers expectations
The optimistic tone about today what now seems to strike a sound pessimistic. The Dutch Finance Minister Jeroen Dijsselbloem and chairman of the euro group shows on arrival in Brussels also little hope:
It is thus likely that the consultation later this week will go even further, such as NRC-economics editor Maarten Schinkel last week already predicted:
Finland: nil chance of agreement
Among all the optimistic voice, there are ministers who are the future see much gloomier: Finnish Finance Minister Alexander Stubb said on arrival in Brussels:
“I have little hope of an agreement today.”
His Irish counterpart Michael Noonan was also gloomy. Despite the fact that the Greeks have submitted proposals, he thinks that additional consultations next Thursday will be necessary.
“There was tonight a lot of uncertainty about the proposals, or the Greeks did have sent the good, and because there has not been a good preparation.”
The German minister Wolfgang Schäuble was very critical.
“I have not seen any new proposals. I do not see how we can properly prepare the EU summit of leaders without serious proposals. “
Questions? Ask them to NRC
Do you have after reading the articles in this month asking about the Greek debt crisis and the negotiations of the Greeks with their creditors? Our economics editor Maarten Schinkel answers questions. Mail them to nieuwsdienst@nrc.nl or send them via Facebook or Twitter.
Christine Lagarde Arrival
The IMF last week was still very critical of the lack of reforms that Greece exhibited. According to Lagarde were “very reasonable proposals”, and it was up to the Greeks to respond. The week before the IMF was still walked away from the negotiating table because there were major differences of opinion with Greece.
Christine Lagarde arrives for the meeting with the EU and the ECB. AP / Olivier Hoslet
Hollande: a sustained chord
The French president Hollande has called today a “sustainable” and “comprehensive” agreement to be concluded between Greece and its creditors, which is not tied to a specific or limited time period. Hollande also said that France will do everything to ensure that agreement is reached.
But Hollande also gave a blow to the arm, report AFP. In the event that the negotiations tonight naught, Hollande hopes that laying the foundations so that “the coming days” agreement can be reached.
Commissioner Moscovici believes deal
The French commissioner Pierre Moscovici of Economic and Financial Affairs is optimistic about a deal
ECB raises support banks’
The European Central Bank (ECB) this morning has once again raised the ceiling for emergency aid to Greek banks, Bloomberg reported according to insiders. The amount as so-called Emergency Liquidity Assistance (ELA) can be granted was for the third time within a week increased because Greek banks in recent days saw billions flow; Greeks take on massive money in banks because of the great uncertainty about the economic future of their country.
Juncker welcomes Tsipras
The President of the European Commission, Jean-Claude Juncker, is not sure that there is today a deal can be closed, he said this morning, after the Greek Prime Minister Alexis Tsipras had welcomed. The two leaders for consultation.
“We have made the past few days progress, but we’re not there yet.”
Greek Prime Tsipras is received this morning by Jean -Claude Juncker, President of the European Commission. AP Photo / Virginia Mayo
Stock markets react relieved this morning
On the stock market in Athens is relieved this morning responded to the friendlier tone since yesterday from both Greece and the EU sounded . The main Greek stock market gauge shot more than 7 percent. In particular, Greek banks regain the confidence of investors and saw their rates. The optimism was also reflected in the bond markets, where Southern European government bonds were more popular. Yields on ten-year Greek debt fell from over 12 percent to less than 11 percent. The collapsed yield on Italian and Spanish government bonds.
The AEX index at Beursplein 5 recorded at the end of the morning 2.7 percent higher at 488.27 points. The stock exchanges in Frankfurt, Paris and London were 1.2 to 3 per cent ahead.
‘positive messages’
expected NRC -economieredacteur Maarten Schinkel that an agreement is reached today?
“It may well do. There are quite a lot of positive news about the proposal Tsipras would have yesterday sent. The atmosphere is a lot friendlier than last week. But the ultimate outward deadline is the June 30 and Thursday, there is also an EU summit with a weekend afterwards. It would therefore just be that it will take another week. That today ‘agreement to agree’ comes and they then Thursday again to talk further. “
Merkel : agreement must be ready for tonight
The day is as follows: 12.30 get the finance ministers of the euro area together <. strong> 15.00 ECB and the IMF come together with the EU representation. 19.00 are the leaders of the euro countries in Brussels together.
German Chancellor Merkel said yesterday that the meeting in the evening is expressly not intended to negotiate, but that there must already be an agreement in principal. The Cabinet of Juncker, President of the European Commission, yesterday it has Tsipras driven proposal a “good basis” referred to the agreement that there should be. Last week, it did not come to an agreement
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