Fra Guardian
A quick recap, for anyone just tuning in.
Greece’s prime minister is under intense pressure tonight to accept even tougher economic reforms and austerity measures, or see his country pushed out of the eurozone.
Alexis Tsipas , the other 18 eurozone leaders, and the heads of the IMF, ECB and EU are locked in talks at the emergency summit to discuss Greece’s request for a third bailout.
The 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.
[In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area, with possible debt restructuring].
The plan also suggests Greece surrenders €50bn of valuable assets to a euro-body, who would sell them off to pay down debt. Unless Athens cracks on with privatisations in a way it has never managed before.
We hear that Tsipras was put under the cosh in a meeting with Angela Merkel, Donald Tusk and Francois Hollande a couple of hours ago:
The draft proposal, which comes from this morning’s eurozone finance ministers, forces Greece to take these seven steps straight away:
- Streamlining VAT
- Broadening the tax base
- Sustainability of pension system
- Adopt a code of civil procedure
- Safeguarding of legal independence for Greece ELSTAT — the statistic office
- Full implementation of automatic spending cuts
- Meet bank recovery and resolution directive
And also get the ball moving on another five points:
- Privatize electricity transmission grid
- Take decisive action on non-performing loans
- Ensure independence of privatization body TAIPED
- De-Politicize the Greek administration
- Return of officials from its creditors to Athens
Professor Karl Whelan argues that Germany is trying to force Greece out.
Other analysts, economists and commentators are also staggered by the scale of these demands — given Greece effectively agreed to its creditors former demands last week.
