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| Eurozone Finance Ministers Hold Emergency Meeting on Greece Bailout | Eurozone Finance Ministers Hold Emergency Meeting on Greece Bailout |
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| BRUSSELS — Eurozone finance ministers were gathering in an emergency session here on Wednesday, under pressure to hammer out a stopgap plan to keep Greece from running out of money as it tries to revise or even scrap the terms of its international bailout agreement. | BRUSSELS — Eurozone finance ministers were gathering in an emergency session here on Wednesday, under pressure to hammer out a stopgap plan to keep Greece from running out of money as it tries to revise or even scrap the terms of its international bailout agreement. |
| The session of the Eurogroup — a committee of finance ministers from the 19 countries using the euro — could be a stormy one, as the newly elected, leftist-led Greek government presses for relief from tough austerity measures. Those restrictions were a condition of Greece's being granted a total of 240 billion euros, or about $272 billion, in loans from its European neighbors and the International Monetary Fund since 2010. Greece still needs to receive its next loan installment, €7.2 billion, or otherwise bridge the financial gap, to keep from defaulting on its international debt payments in coming months. But the new government of Prime Minister Alexis Tsipras has vowed to no longer abide by the terms of the bailout program, which he and many other Greeks blame for the country's economic woes and high unemployment. | The session of the Eurogroup — a committee of finance ministers from the 19 countries using the euro — could be a stormy one, as the newly elected, leftist-led Greek government presses for relief from tough austerity measures. Those restrictions were a condition of Greece's being granted a total of 240 billion euros, or about $272 billion, in loans from its European neighbors and the International Monetary Fund since 2010. Greece still needs to receive its next loan installment, €7.2 billion, or otherwise bridge the financial gap, to keep from defaulting on its international debt payments in coming months. But the new government of Prime Minister Alexis Tsipras has vowed to no longer abide by the terms of the bailout program, which he and many other Greeks blame for the country's economic woes and high unemployment. |
| A central player in the meeting that was expected to run well into the evening on Wednesday is Yanis Varoufakis, the combative new Greek finance minister who has described the bailout program as an economic disaster for his country. Mr. Varoufakis is expected to present plans for a short-term financial bridging arrangement — one that would relax at least some of the austerity provisos. | A central player in the meeting that was expected to run well into the evening on Wednesday is Yanis Varoufakis, the combative new Greek finance minister who has described the bailout program as an economic disaster for his country. Mr. Varoufakis is expected to present plans for a short-term financial bridging arrangement — one that would relax at least some of the austerity provisos. |
| That defiant stance won the backing of Greek lawmakers who passed a vote of confidence in the new governing coalition on Tuesday night in Athens. | That defiant stance won the backing of Greek lawmakers who passed a vote of confidence in the new governing coalition on Tuesday night in Athens. |
| Even if the eurozone finance ministers are unable to come to terms Wednesday night, they will probably still be aiming to prevent Greek tensions from spilling over into a summit meeting of European Union leaders scheduled for Thursday in Brussels. The leaders are supposed to be addressing the Ukraine crisis and ways of responding to terrorism in Europe. | Even if the eurozone finance ministers are unable to come to terms Wednesday night, they will probably still be aiming to prevent Greek tensions from spilling over into a summit meeting of European Union leaders scheduled for Thursday in Brussels. The leaders are supposed to be addressing the Ukraine crisis and ways of responding to terrorism in Europe. |
| The finance ministers may, therefore, try to get the situation into a holding pattern, resuming work on the Greek proposals when they meet again on Monday for their regularly scheduled monthly session. | The finance ministers may, therefore, try to get the situation into a holding pattern, resuming work on the Greek proposals when they meet again on Monday for their regularly scheduled monthly session. |
| That was the indication from Jeroen Dijsselbloem, president of the Eurogroup, as he arrived at the meeting on Wednesday. “The Greek government still is in a program with the eurozone, so that’s the starting point,” Mr. Dijsselbloem told reporters. | That was the indication from Jeroen Dijsselbloem, president of the Eurogroup, as he arrived at the meeting on Wednesday. “The Greek government still is in a program with the eurozone, so that’s the starting point,” Mr. Dijsselbloem told reporters. |
| He said he expected no clear outcome from Wednesday’s session, and “We’ll have to listen to their new ideas and ambitions.” | He said he expected no clear outcome from Wednesday’s session, and “We’ll have to listen to their new ideas and ambitions.” |
| The meeting could be tense nonetheless. | The meeting could be tense nonetheless. |
| Mr. Varoufakis will come face-to-face with Wolfgang Schäuble, his stolid German counterpart who has demanded that Greece broadly stick by its previous commitments to reform and to austerity in return for continued aid. In a meeting of the two last week in Berlin, neither seemed to have convinced the other. | Mr. Varoufakis will come face-to-face with Wolfgang Schäuble, his stolid German counterpart who has demanded that Greece broadly stick by its previous commitments to reform and to austerity in return for continued aid. In a meeting of the two last week in Berlin, neither seemed to have convinced the other. |
| Also at Wednesday's meeting is Michael Noonan, the Irish finance minister who has led his country through years of painful austerity after an international bailout, and has criticized the Greek administration for making “impossible” proposals to close their funding gap. | |
| The “bridge proposal wouldn’t work,” Mr. Noonan said Wednesday, as he headed into the meeting. “I’m still of the view that the only space in which Greece can negotiate is with an extension of their existing program or within a program,” Mr. Noonan said, expressing a preference for granting loans to Greece only on the condition that Athens be held accountable for economic reforms and savings efforts that could be closely monitored. | |
| To keep their financial options open, Greek officials have been courting Russia and China. The overtures appear intended to put pressure on European creditors to make the kinds of concessions the Greeks have been demanding to avoid letting Moscow or Beijing drive a wedge between Athens and the rest of the European Union. | To keep their financial options open, Greek officials have been courting Russia and China. The overtures appear intended to put pressure on European creditors to make the kinds of concessions the Greeks have been demanding to avoid letting Moscow or Beijing drive a wedge between Athens and the rest of the European Union. |
| Mr. Tsipras spoke by phone on Wednesday with the Chinese prime minister, Li Keqiang. Mr. Tsipras’s office said they had discussed plans for a Greek delegation to visit China before an official trip there by the Greek prime minister. | Mr. Tsipras spoke by phone on Wednesday with the Chinese prime minister, Li Keqiang. Mr. Tsipras’s office said they had discussed plans for a Greek delegation to visit China before an official trip there by the Greek prime minister. |
| In Moscow on Wednesday, the Russian and Greek foreign ministers held a joint news conference, where the Russian minister, Sergey V. Lavrov, said his government would consider financial aid if Athens made a request, Reuters reported. | In Moscow on Wednesday, the Russian and Greek foreign ministers held a joint news conference, where the Russian minister, Sergey V. Lavrov, said his government would consider financial aid if Athens made a request, Reuters reported. |
| As the negotiations in Brussels proceeded, thousands of demonstrators on Wednesday night jammed into Syntagma Square and surrounding streets in Athens to support an end to austerity and back the government’s position. | As the negotiations in Brussels proceeded, thousands of demonstrators on Wednesday night jammed into Syntagma Square and surrounding streets in Athens to support an end to austerity and back the government’s position. |
| Many brandished the Greek flag and waved placards reading, “Give Greece a chance!” while others denounced “European blackmail” and called for “no compromise with the bankers and the E.U.” Thousands also rallied in the large northern city of Saloniki, called Thessaloniki by the Greeks. | Many brandished the Greek flag and waved placards reading, “Give Greece a chance!” while others denounced “European blackmail” and called for “no compromise with the bankers and the E.U.” Thousands also rallied in the large northern city of Saloniki, called Thessaloniki by the Greeks. |
| Among the eurozone officials meeting in Brussels who might be able to help persuade Greek officials to hew to at least some of their prior obligations in exchange for a relaxation of austerity rules was Michel Sapin, the French finance minister. Mr. Sapin is a member of the Socialist government in France that has taken its own skeptical view of budgetary belt-tightening. | Among the eurozone officials meeting in Brussels who might be able to help persuade Greek officials to hew to at least some of their prior obligations in exchange for a relaxation of austerity rules was Michel Sapin, the French finance minister. Mr. Sapin is a member of the Socialist government in France that has taken its own skeptical view of budgetary belt-tightening. |
| Other potential peace brokers at the meeting Wednesday night include Christine Lagarde, the managing director of the International Monetary Fund, which is one of Greece’s international creditors. As she headed into the meeting, Ms. Lagarde told reporters she “had a very good exchange” with Mr. Varoufakis earlier in the day. | Other potential peace brokers at the meeting Wednesday night include Christine Lagarde, the managing director of the International Monetary Fund, which is one of Greece’s international creditors. As she headed into the meeting, Ms. Lagarde told reporters she “had a very good exchange” with Mr. Varoufakis earlier in the day. |
| Mr. Varoufakis was expected to ask his eurozone partners on Wednesday for the right to issue about €8 billion of further short-term debt above a current €15 billion limit and to seek permission to raise the amount of money that Greek banks can tap under an emergency liquidity assistance program. | Mr. Varoufakis was expected to ask his eurozone partners on Wednesday for the right to issue about €8 billion of further short-term debt above a current €15 billion limit and to seek permission to raise the amount of money that Greek banks can tap under an emergency liquidity assistance program. |
| There had been signs that capital was fleeing Greek bank accounts, but Michael Howell, managing director of CrossBorder Capital, played down those fears on Wednesday. He said that capital flight was “not the disaster many worried about” amid “little sign that the economy as a whole is hemorrhaging funds.” | There had been signs that capital was fleeing Greek bank accounts, but Michael Howell, managing director of CrossBorder Capital, played down those fears on Wednesday. He said that capital flight was “not the disaster many worried about” amid “little sign that the economy as a whole is hemorrhaging funds.” |
| Mr. Varoufakis was also expected to ask European creditors to give Greece €1.9 billion in profits that they have made on their holdings of Greek bonds and to propose that some €11 billion in residual funding from the recapitalization of Greek banks be used to help Greek lenders deal with nonperforming loans. | Mr. Varoufakis was also expected to ask European creditors to give Greece €1.9 billion in profits that they have made on their holdings of Greek bonds and to propose that some €11 billion in residual funding from the recapitalization of Greek banks be used to help Greek lenders deal with nonperforming loans. |
| In an effort to respond to some demands by creditors, Mr. Varoufakis was expected to pledge a crackdown on tax evasion and corruption. | In an effort to respond to some demands by creditors, Mr. Varoufakis was expected to pledge a crackdown on tax evasion and corruption. |
| Analysts say both sides need to be willing to compromise. | Analysts say both sides need to be willing to compromise. |
| “The solution for Greece is a matter of political willingness,” said Guntram Wolff, the director of Bruegel, a research organization in Brussels. “The first step is for the Greeks to stop their unilateral declarations to increase spending without being able to afford it,” Mr. Wolff said, and “then European creditors should somewhat delay debt repayments and offer them more of a financial cushion.” | “The solution for Greece is a matter of political willingness,” said Guntram Wolff, the director of Bruegel, a research organization in Brussels. “The first step is for the Greeks to stop their unilateral declarations to increase spending without being able to afford it,” Mr. Wolff said, and “then European creditors should somewhat delay debt repayments and offer them more of a financial cushion.” |