Guardian
Olaf Gersemann, business editor of German press, of Die Welt & Welt am Sonntag, cites his own sources when he reports Tsipras has failed in his attempt to have IMF supervision axed from any Greek plan. This was one of two sticking points for Tsipras.
#Greece: #Tsipras fails to get rid of #IMF. Fund will remain involved, sources say. @welt @jandams @andretauber @MartinGreive
— Olaf Gersemann (@OlafGersemann) July 13, 2015
“Market reaction in the euro is surprisingly muted,” Steven Englander, global head of Group-of-10 currency strategy at Citigroup has told AFP.
“The absence of agreement and toughness of terms are eye-catching, but investors are waiting for the outcome more than trying to anticipate it.”
While we wait for any kind of movement in Brussels, a quick market update.
Asian markets rose Monday while the euro was marginally lower, AFP reports.
In Japanese trade the euro dipped but managed to stave off heavy losses as the talks continued in Brussels.
It eased to $1.1136 from $1.1149 in New York late Friday. In earlier electronic trading, the single currency fell as low as $1.1089. It was also at 136.40 yen compared with 136.58 yen in US trade.
Summary
For those just waking up, welcome. Yes it is a new day, but the talks are still going. Everyone in Brussels is envious of your rest.
The summit has just in the last half hour taken another intermission, this time for “final consultations” after an earlier sidelines discussion between Tsipras, Merkel, Hollande and Tusk emerged after four hours with a proposed compromise.
The earlier proposal on the table would force Greece to vote through sweeping changes by Wednesday night. Or, it would be offered a ‘temporary Grexit’; an opportunity to restructure its debts.
Few details were available about just what that compromise entails, but reports from Brussels say there were still two very large sticking points for Greece, namely that Greece wasn’t happy with the involvement of the IMF in the post 2016 package, and the demand for €50bn in asset sales, with proceeds held in another country, was far too high. Current understanding now is that the absolute maximum they could raise through privatisation is €17bn, and money should be kept in Athens.
The former acting director of the IMF’s European department was none too impressed with the first issue.
Elsewhere, anger at the incredibly draconian demands being placed on Greece with this new bailout offer have sparked a social media campaign, #thisisacoup, against Germany and its finance minister Wolfgang Schäuble.
The campaign has been supported by many, including nobel laureate economist Paul Krugman, who lambasted the summit developments in his column at the New York Times.
Updated
Ian Traynor is suggesting an end is in sight. The summit has just taken another intermission, this time for “final consultations.”
