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| Alexis Tsipras meets Angela Merkel for talks amid growing debt fears - live updates | Alexis Tsipras meets Angela Merkel for talks amid growing debt fears - live updates |
| (35 minutes later) | |
| 8.49am GMT08:49 | |
| James Bullard, president of the St. Louis Federal Reserve, has predicted this morning that Greece could leave the eurozone. | |
| But speaking on CNBC, Bullard also warned it would be a mistake and leave Greeks facing a ‘bleak’ future. | |
| #Fed's Bullard says #Grexit possible but would not be advisable, would be bleak for Greece | |
| 8.46am GMT08:46 | |
| The mood in Germany | |
| Our Berlin correspondent, Kate Connolly, reports that German sentiment towards Greece has soured in recent months, as some lose patience with Athens’ demands for more help. | |
| One Berliner, Christiane Schneider, told Kate: | |
| “I really don’t know how much longer we should keep patting their backs and telling them everything’s going to be alright – here’s an extra 100m. | |
| If my son kept coming to me for money to get himself out of trouble, I’d help him immediately, but I’d want to see that he was trying to get out of any mess he’d got himself into, wouldn’t I? I couldn’t afford to keep tossing banknotes in his direction.” | |
| Tsipras’s calls for war reparations appears to have split Germany; with some resenting the demands, but others acknowledging that it has some merit. | |
| Kate writes: | |
| Georg Franke, a 57-year-old market-stall holder in Potsdam, said while he believed the Greek government’s behaviour had been “childish”, he did not find its second world war compensation claims so outlandish. | |
| “The trouble is, Germans know a lot about the atrocities carried out in their name by the Wehrmacht and the SS against the Jews from Germany, Poland and Hungary, as well as the Slavs, but we learnt very little in school about the horrors carried out against the Greeks. It was only recently, around the 70th anniversary of the liberation of Auschwitz, that I saw a documentary which touched on how they [Jewish Greeks] were almost all wiped out and it brought it home to me.” | |
| Related: How German voters are losing patience with Greece | |
| 8.31am GMT08:31 | 8.31am GMT08:31 |
| The FTSE 100 index of leading shares has dropped back down to the 7,000 mark in early trading, down 22 points. So no new record high yet. | The FTSE 100 index of leading shares has dropped back down to the 7,000 mark in early trading, down 22 points. So no new record high yet. |
| Other European markets have dipped a little too, having hit seven year highs on Friday, as traders fret about the Greek debt crisis. | |
| Jasper Lawler, market analyst at CMC Markets, explains: | Jasper Lawler, market analyst at CMC Markets, explains: |
| It should prove to be another decisive week for Greece as Greek Prime Minister Tsipras is set to meet German Chancellor Merkel. | It should prove to be another decisive week for Greece as Greek Prime Minister Tsipras is set to meet German Chancellor Merkel. |
| Athens is hoping to improve relations with its biggest EU creditor before announcing a more detailed set of reforms required to unlock the next instalment of aid. | Athens is hoping to improve relations with its biggest EU creditor before announcing a more detailed set of reforms required to unlock the next instalment of aid. |
| Eurozone finance minister could meet again soon, if Greece produces those reforms.... | Eurozone finance minister could meet again soon, if Greece produces those reforms.... |
| Updated at 9.10am GMT | |
| 8.17am GMT08:17 | 8.17am GMT08:17 |
| Hajo Funke, political scientist with Berlin’s Free University, says that “two worlds will collide” when Merkel and Tsipras sit down this afternoon | Hajo Funke, political scientist with Berlin’s Free University, says that “two worlds will collide” when Merkel and Tsipras sit down this afternoon |
| He explained to AFP that: | He explained to AFP that: |
| “There is the political world of Greece, where a left-wing government faces a society in collapse, (of) societal decay... as grave as anything we have seen in western Europe since 1945.”. | “There is the political world of Greece, where a left-wing government faces a society in collapse, (of) societal decay... as grave as anything we have seen in western Europe since 1945.”. |
| “The other world is a content country that is dominant in Europe, Germany, which worries about maintaining its economic happiness, and which is now being asked to help the other, under conditions it doesn’t fully understand.” | “The other world is a content country that is dominant in Europe, Germany, which worries about maintaining its economic happiness, and which is now being asked to help the other, under conditions it doesn’t fully understand.” |
| 8.12am GMT08:12 | 8.12am GMT08:12 |
| German politicians hope that Alexis Tsipras will arrive in Berlin with details of the new reform plans. | German politicians hope that Alexis Tsipras will arrive in Berlin with details of the new reform plans. |
| Thomas Oppermann, parliamentary leader of Merkel’s Social Democrat coalition partners, says Greece must deliver on the pledges made at Thursday night’s mini-summit in Brussels. | Thomas Oppermann, parliamentary leader of Merkel’s Social Democrat coalition partners, says Greece must deliver on the pledges made at Thursday night’s mini-summit in Brussels. |
| “I expect [Mr Tsipras] to present this list in his talks with the chancellor on Monday. | “I expect [Mr Tsipras] to present this list in his talks with the chancellor on Monday. |
| “I want to know once and for all if Greece is ready to reform or not.” | “I want to know once and for all if Greece is ready to reform or not.” |
| Greek insiders, though, have suggested this list might not be ready until Easter.... | Greek insiders, though, have suggested this list might not be ready until Easter.... |
| 8.02am GMT08:02 | 8.02am GMT08:02 |
| Tsipras: Impossible to pay debts without help | Tsipras: Impossible to pay debts without help |
| Alexis Tsipras has raised the stakes ahead of today’s meeting with Angela Merkel by declaring that Greece cannot meet looming debt repayments without help from its creditors. | Alexis Tsipras has raised the stakes ahead of today’s meeting with Angela Merkel by declaring that Greece cannot meet looming debt repayments without help from its creditors. |
| In a letter sent to Germany last week, Tsipras warned that the lack of bailout funds mean it is “impossible” to service debt obligations due in the coming weeks (such as debt repayments and publc sector wage bills) | In a letter sent to Germany last week, Tsipras warned that the lack of bailout funds mean it is “impossible” to service debt obligations due in the coming weeks (such as debt repayments and publc sector wage bills) |
| He also criticised restrictions imposed by the European Central Bank which prevent Athens issuing more short-term debt to tide itself over. | He also criticised restrictions imposed by the European Central Bank which prevent Athens issuing more short-term debt to tide itself over. |
| Tsipras urged Merkel not to allow a “small cash flow issue” to turn into a major crisis. | Tsipras urged Merkel not to allow a “small cash flow issue” to turn into a major crisis. |
| Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the Spring and Summer of 2015 (primarily to the IMF), it ought to be clear that the ECB’s special restrictions when combined with the disbursement delays would make it impossible for any government to service its debt obligations. | Given that Greece has no access to money markets, and also in view of the ‘spikes’ in our debt repayment obligations during the Spring and Summer of 2015 (primarily to the IMF), it ought to be clear that the ECB’s special restrictions when combined with the disbursement delays would make it impossible for any government to service its debt obligations. |
| He added that: | He added that: |
| Servicing these repayments through internal resources alone would, indeed, lead to a sharp deterioration in the already depressed Greek social economy – a prospect that I will not countenance. | Servicing these repayments through internal resources alone would, indeed, lead to a sharp deterioration in the already depressed Greek social economy – a prospect that I will not countenance. |
| It suggests Tsipras will push Merkel hard tonight to unlock some of the €7.2bn bailout funds which its lenders are holding back, until they see credible reform plans. | It suggests Tsipras will push Merkel hard tonight to unlock some of the €7.2bn bailout funds which its lenders are holding back, until they see credible reform plans. |
| The FT’s Peter Spiegel, who published the letter, has analysed the full text here: | The FT’s Peter Spiegel, who published the letter, has analysed the full text here: |
| Tsipras letter to Merkel: the annotated text | Tsipras letter to Merkel: the annotated text |
| Monday's FT front page: Greece’s leader warns Merkel of ‘impossible’ debt payments #tomorrowspaperstoday #bbcpapers pic.twitter.com/OOymneYXy2 | Monday's FT front page: Greece’s leader warns Merkel of ‘impossible’ debt payments #tomorrowspaperstoday #bbcpapers pic.twitter.com/OOymneYXy2 |
| Updated at 8.06am GMT | Updated at 8.06am GMT |
| 7.40am GMT07:40 | 7.40am GMT07:40 |
| The Agenda: Mr Tsipras goes to Berlin | The Agenda: Mr Tsipras goes to Berlin |
| Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. |
| German MPs laughed last week when Angela Merkel told them she was looking forward to meeting - and perhaps arguing - with her Greek counterpart today. But there may not be too much mirth in Berlin tonight as the chancellor hosts Alexis Tsipras for the first time. | German MPs laughed last week when Angela Merkel told them she was looking forward to meeting - and perhaps arguing - with her Greek counterpart today. But there may not be too much mirth in Berlin tonight as the chancellor hosts Alexis Tsipras for the first time. |
| The two leaders will meet as concern swirls that Greece could soon run out of cash, unless it can satisfy its creditors. | The two leaders will meet as concern swirls that Greece could soon run out of cash, unless it can satisfy its creditors. |
| Tsipras has told Greek media that the meeting with Merkel is an opportunity to talk “without the pressure of any negotiation”. His officials are busy working on new economic reform plans which will, they hope, finally persuade its creditors to hand over some bailout funds. | Tsipras has told Greek media that the meeting with Merkel is an opportunity to talk “without the pressure of any negotiation”. His officials are busy working on new economic reform plans which will, they hope, finally persuade its creditors to hand over some bailout funds. |
| But the meeting comes after two months of rising tensions between the two countries since Tsipras won power in late January, and began pushing for a new debt deal. | But the meeting comes after two months of rising tensions between the two countries since Tsipras won power in late January, and began pushing for a new debt deal. |
| His call for war reparations has raised the tensions in Germany too. | His call for war reparations has raised the tensions in Germany too. |
| And back home, Tsipras also faces pressure from hard-line members of his own party who fear he may cave in to eurozone demands. | And back home, Tsipras also faces pressure from hard-line members of his own party who fear he may cave in to eurozone demands. |
| Athens correspondent Helena Smith reported last night: | Athens correspondent Helena Smith reported last night: |
| On both sides, the talks are being seen as a “moment of truth.” Greece has made clear, under its new government, that it does not want to leave the eurozone and Tsipras his point that austerity needs to be eased. In Athens officials are putting on a brave face. | On both sides, the talks are being seen as a “moment of truth.” Greece has made clear, under its new government, that it does not want to leave the eurozone and Tsipras his point that austerity needs to be eased. In Athens officials are putting on a brave face. |
| “We are looking forward to this meeting,” said the Greek government spokesman Gavriel Sakellarides. “There’s a good chemistry between the two leaders. It’s much better that they talk directly to one another. | “We are looking forward to this meeting,” said the Greek government spokesman Gavriel Sakellarides. “There’s a good chemistry between the two leaders. It’s much better that they talk directly to one another. |
| But many also fear that in a bid to douse dissent within his own party, Tsipras is trying to buy time hoping that fellow anti-austerians are elected elsewhere in Europe. And that Merkel, bowing to rising anti-Greek sentiment among her own constituency, will also push too hard. | But many also fear that in a bid to douse dissent within his own party, Tsipras is trying to buy time hoping that fellow anti-austerians are elected elsewhere in Europe. And that Merkel, bowing to rising anti-Greek sentiment among her own constituency, will also push too hard. |
| Related: 'Moment of truth' for Greece and the euro as Tsipris arrives in Berlin | Related: 'Moment of truth' for Greece and the euro as Tsipris arrives in Berlin |
| The meeting starts in mid-afternoon, with a press conference scheduled before a ‘working dinner’: | The meeting starts in mid-afternoon, with a press conference scheduled before a ‘working dinner’: |
| Greek PM Tsipras & German Chancellor Merkel meeting agenda (GMT): 1600 - Meeting 1800 - Presser 1900 - Working dinner | Greek PM Tsipras & German Chancellor Merkel meeting agenda (GMT): 1600 - Meeting 1800 - Presser 1900 - Working dinner |
| Also coming up today, ECB president Mario Draghi is testifying to the European Parliament’s economic and monetary affairs committee. | Also coming up today, ECB president Mario Draghi is testifying to the European Parliament’s economic and monetary affairs committee. |
| Draghi may sound more confident about economic prospects, given recent signs of recovery in the euro area. | Draghi may sound more confident about economic prospects, given recent signs of recovery in the euro area. |
| Stan Shamu of IG says: | Stan Shamu of IG says: |
| Given all the measures that have been introduced by the ECB and signs of bottoming in data, there is a good chance Mr Draghi will give a more upbeat assessment of the economy. | Given all the measures that have been introduced by the ECB and signs of bottoming in data, there is a good chance Mr Draghi will give a more upbeat assessment of the economy. |
| Draghi’s should also field questions on the Greek crisis, given the ECB is effectively keeping its banks alive with vital liquidity support. | Draghi’s should also field questions on the Greek crisis, given the ECB is effectively keeping its banks alive with vital liquidity support. |
| Two pieces of economic data to watch out for: | Two pieces of economic data to watch out for: |
| And European stock markets are expected to rise this morning, with the FTSE 100 on track to hit a fresh all-time high after breaking through the 7,000-point mark on Friday. | And European stock markets are expected to rise this morning, with the FTSE 100 on track to hit a fresh all-time high after breaking through the 7,000-point mark on Friday. |
| I’ll be tracking all the main events through the day.... | I’ll be tracking all the main events through the day.... |
| Updated at 7.48am GMT | Updated at 7.48am GMT |