Fra Telegraph
Greece: we still want better terms
Announcing the remarkable news that it now wants a third bailout, the Greek government says:
“From the first moment, we made clear that the decision to hold a referendum is not the end but the continuation of negotiations for better terms for the Greek people…
The Greek government will until the end seek a viable agreement within the euro.”
GREECE PROPOSES NEW TWO YEAR BAILOUT
The Greek government has proposed a new Two-Year bailout programme, according to news breaking in Athens.
This two-year programme would be supplied under the European Stability Mechanism and – crucially – would run alongside a debt restructuring. And it wouldn’t include the International Monetary Fund.
In a statement from Alexis Tsipras’s office, cited by Reuters, Greecesays it is still at the negotiating table, and seeking “a viable solution, under the end, aimed at staying in the euro.”
This could be a very significant development, depending on how creditors react. No word yet on how large this programme would be, though, let alone what conditions Greece is prepared to accept.
One important point — this would not be an extension of the current bailout (which was made under the EFSF) but a whole new programmme. That means a discussion of debt relief would be an option.
Details and reaction to folllow….
Over in the Greek capital, a press briefing with foreign journalists has just been cancelled – so cabinet ministers can gather for an urgent meeting.
The Eurogroup president, Jeroen Dijsselbloem, has also just pulled out of a TV interview – citing “urgent obligation”.
So much urgency, and so little time left…..
Lunchtime summary
As tonight’s deadline approaches for Greece to pay €1.6bn to the IMF and agree a deal before its bailout extension runs out, there are hopes that the country and its creditors can still come to some sort of deal.
Finance minister Yanis Varoufakis has said plainly that Greece will not pay the IMF – an event which ratings agencies would not consider as a default – but is still hopeful of an agreement.
And there are reports that Greek prime minister Alexis Tsipras may be ready to agree a deal, and could even travel to Brussels tonight. Tsipras has also reportedly had telephone contact today with EU president Jean-Claude Juncker, the head of the European Central Bank, Mario Draghi and European parliament president Martin Schultz.
But it is not clear whether there have been any changes to what Greece’s creditors proposed on Friday, which was rejected in favour of a referendum to be held on Sunday. Greece’s chief negotiator Euclid Tsakalotos has talked of new proposals but German chancellor Angela Merkel has said she has not heard of any changes since Friday.
Meanwhile Reuters reported:
EC president Jean-Claude Juncker had offered to convene an emergency meeting of euro zone finance ministers on Tuesday to approve an aid payment to prevent Athens defaulting, if Tsipras sent a written acceptance of the terms. He also dangled the prospect of a negotiation on debt rescheduling later this year if Athens said “yes”.
Markets have come off their worst levels, with both Germany’s Dax and France’s Cac both marginally in positive territory after early falls.
Elsewhere Spain’s prime minister Mariano Rajoy added his voice to the chorus of European leaders saying that a no vote in Sunday’s referendum means Greece will have to leave the eurozone. But German finance minister Wolfgang Schäuble went against the trend by saying that was not necessarily the case.
And Greece denied plans to re-instate the drachma despite a tweet to that effect by one of the country’s MPs.
Here’s Bloomberg on Schaeuble’s comments:
German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece would stay in the euro for the time being if Greek voters reject austerity in a referendum scheduled this week, according to three people present.
Schaeuble also said the European Central Bank would do what’s needed to protect the euro if Greeks voted against the bailout terms in the July 5 referendum, according to the people, all of whom participated in the closed-door meeting on Tuesday. They asked not to be identified, citing the private nature of the discussion.
The German Finance Ministry declined to comment
