The Eurogroup talks today about the Greek proposal for a new aid package. The finance ministers have to decide whether to continue discussions with Greece phrase – “a very drastic decision,” said Eurogroup president Dijsselbloem about it. Tomorrow is the deadline for an agreement. If it does not, a Grexit seems inevitable. Follow the latest developments.
Dijsselbloem: This is a difficult consultation
Dijsselbloem has just released the first substantive response to the Greek proposal:
“I expect a difficult deliberation The key is trust:. The Greeks will have to work very hard to regain it, it is questionable whether the Greeks really do what they promise and that they will implement the action is.. also much criticism of the Greek proposal. On paper it’s still not good enough. “
‘Little Enthusiasm’
Almost starts the euro summit. Our correspondent Tijn Sadée about the mood in Brussels
Vooroverlegje
The Greek finance minister Tsakolotos would now talk to Eurocomissaris Pierre Moscovici and Dijsselbloem.
No comment from Finnish Minister
The Minister Finance is Finland – not common – wordlessly walked inside.
news agency ANP the Declaration of State Wiebe, who attends the concert because Dijsselbloem president is:
The Greeks will still have to make a number of commitments before euro countries are willing to talk about a third aid package for the ailing country. That said Secretary of State Eric Wiebes before the inserted meeting of the finance ministers of the euro countries (Eurogroup) in Greece. Restoring confidence because it is all about.
to make a formal request and detailed reform and savings plans have to serve “the Greeks put a step,” Wiebe said. According to Wiebe is from the review of the proposals by the experts of the lenders revealed that there are “still some conditions must be completed before negotiations can begin.” According to the Minister, the experts are critical of the plan.
Confidence in the Greeks suffered a severe setback in the euro countries, Wiebe said. “This is about proposals that are massively rejected and which the Greek government said that it was best to reject it. There are major concerns about. “Wiebes really want to be sure that the Greek government these plans actually intend to carry out.
In the past there were big plans but were not carried out. Wiebe called it the “lack of implementation force” of the Greeks. He was referring among others to the privatization of public enterprises. “There were big ambitions, but there is only landed a shred of.”
Arrival in Brussels
German Finance Minister Wolfgang Schaeuble. AP / Francois Walschaerts
IMF Managing Director Christine Lagarde. AP / Michel Euler
The Greek Minister of Finance Euclid Tsakalotos. Reuters / Eric Vidal
Commissioner Pierre Moscovici. Reuters / Eric Vidal
Wiebe also doubts
Serious doubts?
would doubt some ministers of the euro area to the Greek proposal. Reportedly, the German minister Schläube is one of them, though his spokesman denied that he would have called the proposal “inadequate.” He is expected to issue a statement shortly before the euro summit begins.
Against journalist Yannis Koutsomitis says a source which Schläube the debate in any case not entirely will take, but the outcome wait.
The Austrian finance minister has his doubts. “What guarantees are there that Greece effectively implements the reforms?”
Comments
Statements from politicians trickling in, now the EU Summit is about to start. The Minister of Finance of Estonia, Sven Sester says that several questions are still unanswered.
European Commissioner Pierre Moscovici against AFP news agency:
“It is essential that reforms are implemented quickly, which is the key to everything, a program to establish that solves the debt issue. “
Senior officials of the Eurogroup are still busy in preparation for the meeting of the finance ministers.
‘Progress’
Christine Lagarde said on arrival in Brussels to reporters:
“We are here to make enormous progress.”
Draws on a break?
Key players arrive in Brussels
Unser money
The German comedians and Klaas Jan Boehm Heufer-Umlauf to read comments from German newspapers!. Their message to their compatriots: be a little more tolerant to the Greeks
These are the hordes
Before the ECB’s emergency liquidity to Greek banks may grant, there must be agreement on difficult issues.
- A deal likely involves debt relief. Then Tsipras is at home not empty-handed. And it keeps alive the possibility of IMF involvement in the bailout package: the fund has no money stabbing in countries whose debt is unsustainable. But debt relief for the euro countries have borrowed money difficult to sell – they have promised their voters that every dollar would come back
- Greece need bridge financing.. For ten days the country has to repay 3.5 billion euros to the ECB. It is for the euro countries Greece already prone to send money, while it has granted no promises yet.
- If there is an agreement, all eurozone countries should be agreed. And in Germany, the Netherlands, Austria, Finland, Slovakia and Estonia should be in the national parliament voted.
Easy it is not
Although the sounds are positive after the Greek proposal for a third bailout package, it will not be easy this afternoon, when the Eurogroup meets. Should there be no agreement, there is an EU Summit tomorrow. The two “intense days,” our correspondent Stéphane Alonso writes today in NRC Weekend
“The last five months, the Eurogroup was closed front, but now there is a knot must be cut signs located three camps away. Most countries, including Germany, the Netherlands and a trio of East European member states seem willing to take the risk of a Greek exit from the eurozone. France, Italy and Cyprus (and the European Commission) want anyway occur. And then there is another group (Spain, Ireland, Portugal) present rather a Grexit, but not at any price. “
The camps in Europe:
75 billion
Our correspondent Tijn Sadée:
The analysis of Reuters EU columnist Hugo Dixon
What happens in Greek politics as an agreement is reached? Some SYRIZA MPs have already said to austerity measures, which the current coalition (Syriza and a small right-wing party, the Independent Greeks) is in trouble. Moreover voted the majority of the Greek population (61 percent) at the end of June an agreement as proposed by Europe (and resembles the Greek proposal).
Advice troika
The Frankfurter Allgemeine Zeitung judges the troika of IMF, ECB and EC positive about the Greek proposal, but with some caveats. The Greek government should make things clearer and must meet other conditions. The advice to the Eurogroup on the proposal would be three sides.
Schaube denies proposal “inadequate” to have called
The result of the meeting of the euro group is still “wide open,” said a spokesman for the German Finance Ministry. He denied rumors that the Finance Minister Schäuble the Greek proposal “inadequate” is mentioned.
At three o’clock this afternoon come the eurozone finance ministers together. They will discuss the evaluation of the proposal by the IMF, the ECB and the EC.
What’s in it for the Netherlands
New York Times the resistance in rich countries for a fiscal union is explained with the Netherlands as an example: The problem with a euro fix: what’s in it for the Dutch Why is European integration sensitive
“Basically, the proposition of European integration? Is that the Netherlands shouldering end up like Connecticut. And eventhough Connecticut is a lovely place, the Dutch have good reason to be wary of that. It’s expensive to be Connecticut, Because Connecticut Has to Pay for Mississippi and Alabama. “
“A much more centralized EU budget, with much more money flowing through Brussels the way it flows through Washington, could providence similar macroeconomic stability to Europe by creating a fiscal union. (…) The obvious question, then, about a fiscal union is: What’s in it for the Netherlands (or Austria or Luxembourg)? Is it worth making the euro work ‘If That entails devoting several at percentage points of your economic output to fiscal transfers to Poorer countries, indefinitely, the way Connecticut does to Poorer states? “
The Greek front pages today
Debt seems inevitable
The Greeks would like a part of the official debt of around 175 percent of GDP debt is forgiven. Even IMF calls this inescapable But for the euro area this is not an option. countries promised so positively to their residents that the borrowed money would come back again, that this would lead to a huge loss of face, they fear. But you can forgive debts fine without admitting it, writes our economics editor Maarten Schinkel
“A debt has a nominal value and a true value -. The so-called net present value (NPV) Here’s why:. if someone borrows 100 euros, and pay back tomorrow, then that claim you worth much more than when he was only paid back in 2040. Or until 2054. Nominal nothing. changed: it is still around 100 euros But the real value, NPV, of course, become much less “
What does the Greek proposal?
Thirteen sides with proposals for reforms and budget cuts were the Greeks Thursday at Dijsselbloem. In return, they want to euro 53.5 billion, although it sounds go up tens of billions more are needed. The Greeks set to include:
- The standard VAT rate is 23 percent. Importantly, a reduction in the VAT tax will be abolished on the islands, “except for the most distant islands”.
- The new retirement age in Greece is 67 years. Provisions for early retirement will be phased out.
- In 2018, the Greek budget surplus 3.5 percent.
- This year, be privatized two ports.
Read the Greek proposals here . whole
The proposal is in some respects beyond the proposal of Europe from the end of June, which was rejected in a referendum by the Greeks Our correspondent Stéphane Alonso.
“The Greek government believes its plan provides more savings than 8 billion that was talked about so far, including through additional reforms in the civil service, a tougher approach to tax evasion and a new framework for collective bargaining at the end of this year to be completed. Moreover, the Greek government now comes up with a plan B. In disappointing revenues will include the tax rate for the lowest income (under 12,000 euros) increased by 4 percentage points to 15 percent and corporate income goes up. “
That the Greeks make a tougher proposition than they have rejected, given the economic situation in the country not strange, says Alonso.
“The economic situation deteriorated in the past two weeks. The problem is that it requires much more confident than a few weeks to get the banks open again. Therefore, additional measures are needed. The challenge for the Greek government has prevented the country is thrown into chaos. “
Keep smiling
They have understood in Greece. In the photo offerings are remarkably cheerful faces. Greys and the occasional grimace.
Reuters / Jean-Paul Pelissier
Tsipras at the Greek Parliament tonight. Reuters / Christian Hartmann
AFP / Andreas Solaro
In Europe, it is all about compromise
Without compromise, the EU is no longer himself, writes our EU columnist Caroline de Gruyter today . NRC Weekend
“The European Union is inspired by the 1914 trauma, how do you prevent national politicians in extremis will like them pick The answer was of postwar politicians by ensuring that there are no winners and losers more. Countries always keep their own hang-ups, interests and concerns. Previously they fought once every few years on the battlefield with weapons. Since the fifties they do with words. No more war, but a meeting. “
Varoufakis: Germany save us deliberately not
In a long discourse late Varoufakis, until Monday Finance Minister in Greece, on its website its light on the top of the weekend. And on the power relations of the EU. Varoufakis want the debts are lit in Greece. Germany blocks which according to him, because the country has an interest in Grexit. ( The Guardian published a shorter version.)
“After the crisis of 2008/9, Europe did not know how to respond. Should it prepare the ground for at least one expulsion (that is, Grexit) to then strict discipline? Or move to a federation? It has so far done neither, its existentialist fear forever rising. Schaeuble has Convinced That shaft things stand, he needs a Grexit to clear the air, one way or another. Suddenly, a permanently unsustainable Greek public debt, without-which the risk of Grexit would fade, HAS acquired a new usefulness for Schauble.
“What do I mean by that? Based on months of negotiation, my conviction is That the German finance minister wants Greece to be pushed out of the single currency to put the fear of God into the French and have them accept his model of a disciplinarian eurozone. “
IMF, EC and ECB give the green light
The European Commission, the European Central Bank (ECB ) and the International Monetary Fund (IMF) have told the governments in the euro zone that the Greek proposals for a new rescue plan is a basic drill negotiation. They have thirteen edges proposals carefully studied the past day and analyzed technical
One person says to news agency Reuters.
“see under certain conditions she’s proposals as a basis for negotiations on the ESM program. This review was yesterday sent to the Eurogroup president. “
Their recommendations are important for the euro group meeting this afternoon at three o’clock in Brussels. Is then decided whether the Eurogroup on talking with Brussels. The advisors of the ministers come together earlier, at ten o’clock.
Should the Greek government to step down after agreement?
Good morning! Today, the euro group meets on the proposal Thursday that Prime Tsipras has returned to Eurogroup chairman Dijsselbloem.
The Greek parliament met late into the night. And finally voted in favor of the Greek proposal: spending cuts and reforms in exchange for 53.5 billion euros in 2018. But, fifteen MPs from ruling party Syriza have said the proposal but not to his austerity measures. It is speculated that there is therefore a new government is needed after any agreement
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