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| Greece scrambles to agree reforms on Independence Day - live updates | Greece scrambles to agree reforms on Independence Day - live updates |
| (35 minutes later) | |
| 8.36am GMT08:36 | |
| Greece’s prime minister has returned to Athens following a two-day trip to Berlin which appears to have improved the tense relations with Germany. | |
| But now, Alexis Tsipras must address concerns within his own party over the reforms which Greece’s creditors are seeking. | |
| The Kathimerini newspaper says that Tsipras will first pitch the package to the party’s political secretariat in the next few days, followed by all of his party’s MPs. | |
| They could object to several potential reforms: | |
| This could include the retention of the contentious ENFIA property tax for another year, albeit adjusted so that the less well-off pay less, as well as labor and pension reforms. | |
| The coalition has already sought to defuse any tension over privatizations by saying that it will only seek strategic partnerships that allow the state to retain a controlling majority. | |
| Lenders also want the special 30 percent reduction on VAT enjoyed by Greece’s islands to be scrapped; another potential flashpoint. | |
| 8.06am GMT08:06 | |
| Europe’s stock markets have opened calmly, as investors await the IFO survey of German business climate in an hour’s time. | |
| The Eurofirst 300 index of leading shares dipped by 0.2%. In London, the FTSE 100 has risen by just 3 points to 7023. | |
| Stan Shamu of IG says: | |
| Europe has been particularly interesting as Germany tries to pull the region out of a slump but some analysts remain concerned that the two-speed economy will not be easily rectified. | |
| 7.53am GMT07:53 | 7.53am GMT07:53 |
| Japanese investors are alarmed by the risk of Greece leaving the euro, and Britain leaving the European Union, reports Stephen King, HSBC’s chief economist. | Japanese investors are alarmed by the risk of Greece leaving the euro, and Britain leaving the European Union, reports Stephen King, HSBC’s chief economist. |
| Uppermost in the minds of Tokyo-based investors are Grexit and Brexit. It's political economy that increasingly matters. | Uppermost in the minds of Tokyo-based investors are Grexit and Brexit. It's political economy that increasingly matters. |
| Oh, and there's no surprise about the deflationary tendencies seen elsewhere in the world. In Tokyo, it's a case of "been there, done that" | Oh, and there's no surprise about the deflationary tendencies seen elsewhere in the world. In Tokyo, it's a case of "been there, done that" |
| 7.50am GMT07:50 | 7.50am GMT07:50 |
| Last night, economists at Deutsche Bank predicted that Greece will run out of funds on April 9th, when it must repay €460m to the IMF, without fresh funds. | Last night, economists at Deutsche Bank predicted that Greece will run out of funds on April 9th, when it must repay €460m to the IMF, without fresh funds. |
| They warned that tax revenues so far this year are below target (by around €1bn), and the steady withdrawal of savings is leaving Greek banks worryingly short of liquidity. | They warned that tax revenues so far this year are below target (by around €1bn), and the steady withdrawal of savings is leaving Greek banks worryingly short of liquidity. |
| Deutsche Bank says: | Deutsche Bank says: |
| “Deposit flight has risen to about €400 million on March 18, the highest since the Feb. 20 agreement. The risk of capital controls continues to rise.” | “Deposit flight has risen to about €400 million on March 18, the highest since the Feb. 20 agreement. The risk of capital controls continues to rise.” |
| On balance, they still reckon a deal will be reached with Greece’s creditors, but “uncertainty will remain high” in the meantime. | On balance, they still reckon a deal will be reached with Greece’s creditors, but “uncertainty will remain high” in the meantime. |
| Updated at 7.51am GMT | Updated at 7.51am GMT |
| 7.41am GMT07:41 | 7.41am GMT07:41 |
| Brussels officials to discuss Greece today | Brussels officials to discuss Greece today |
| While Greece proudly marks Independence Day, officials in Brussels will be discussing the state of the reform plan demanded by creditors, and the health of its banking sector. | While Greece proudly marks Independence Day, officials in Brussels will be discussing the state of the reform plan demanded by creditors, and the health of its banking sector. |
| Officials on the Euro Working Group will hold a teleconference call to discuss how much progress has been made towards a credible economic plan to unlock much-needed bailout funds. | Officials on the Euro Working Group will hold a teleconference call to discuss how much progress has been made towards a credible economic plan to unlock much-needed bailout funds. |
| Meanwhile, officials from the ECB will discuss the Greek banking system - and the emergency liquidity keeping it afloat. | Meanwhile, officials from the ECB will discuss the Greek banking system - and the emergency liquidity keeping it afloat. |
| Bloomberg has the details: | Bloomberg has the details: |
| The European Central Bank Governing Council will hold a weekly call to assess the Emergency Liquidity Assistance keeping Greece’s banking system afloat while euro-area finance ministry officials will have a separate discussion on the progress of the country’s economic policy program. | The European Central Bank Governing Council will hold a weekly call to assess the Emergency Liquidity Assistance keeping Greece’s banking system afloat while euro-area finance ministry officials will have a separate discussion on the progress of the country’s economic policy program. |
| Without access to capital markets, or the ECB’s normal financing operations, Greek banks rely on almost 70 billion euros ($76 billion) of ELA to cover a financing shortfall exacerbated by steep deposit withdrawals. | Without access to capital markets, or the ECB’s normal financing operations, Greek banks rely on almost 70 billion euros ($76 billion) of ELA to cover a financing shortfall exacerbated by steep deposit withdrawals. |
| While inspectors are gauging the case for continuing financial support for Europe’s most-indebted nation, many Athenians will be watching a parade of battle tanks and fighter jets to mark the beginning in 1821 of the war that won independence from the Ottoman Empire. | While inspectors are gauging the case for continuing financial support for Europe’s most-indebted nation, many Athenians will be watching a parade of battle tanks and fighter jets to mark the beginning in 1821 of the war that won independence from the Ottoman Empire. |
| The government of George Papandreou scaled down military parades to cut costs after the Greek debt crisis erupted in 2010. Fighter jets made a comeback to the skies of Athens last year at a cost of about 500,000 euros, according to a defense ministry official from the previous administration. | The government of George Papandreou scaled down military parades to cut costs after the Greek debt crisis erupted in 2010. Fighter jets made a comeback to the skies of Athens last year at a cost of about 500,000 euros, according to a defense ministry official from the previous administration. |
| 7.33am GMT07:33 | 7.33am GMT07:33 |
| The agenda: Clock ticking on Greek reforms on Independence Day | The agenda: Clock ticking on Greek reforms on Independence Day |
| 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. |
| And happy Independence Day to our Greek readers, at home and abroad. Ceremonies are taking place in Greece today to commemorate the events of 1821, when revolutionaries began the battle to overthrow the Ottoman Empire and claim freedom. | And happy Independence Day to our Greek readers, at home and abroad. Ceremonies are taking place in Greece today to commemorate the events of 1821, when revolutionaries began the battle to overthrow the Ottoman Empire and claim freedom. |
| Greek Independence Day!!! #25Martiou #25thMarch #GreekIndependenceDay #Greece pic.twitter.com/8g4JWenXCK | Greek Independence Day!!! #25Martiou #25thMarch #GreekIndependenceDay #Greece pic.twitter.com/8g4JWenXCK |
| Congratulations to Greeks everywhere for today's celebration of National Independence. #25March | Congratulations to Greeks everywhere for today's celebration of National Independence. #25March |
| Well said, ambassador. | Well said, ambassador. |
| Greece won’t hold back on the celebrations today, with a big military parade planned, including a flypast in Athens. | Greece won’t hold back on the celebrations today, with a big military parade planned, including a flypast in Athens. |
| Yesterday, students marched through the Greek capital to mark the event too. | Yesterday, students marched through the Greek capital to mark the event too. |
| But behind the ceremony, Greece is under growing time pressure to come up with credible reforms that will unlock aid from its creditors, before running out of cash sometime in April. | But behind the ceremony, Greece is under growing time pressure to come up with credible reforms that will unlock aid from its creditors, before running out of cash sometime in April. |
| It emerged last night that the European Central Bank’s supervisors has written to Greek banks, instructing them not to buy any more government debt. The FT says the ECB could make the restriction legally binding. | It emerged last night that the European Central Bank’s supervisors has written to Greek banks, instructing them not to buy any more government debt. The FT says the ECB could make the restriction legally binding. |
| That cuts off a potential source of emergency funding for Athens. | That cuts off a potential source of emergency funding for Athens. |
| Also coming up today..... | Also coming up today..... |
| Germany’s IFO institute publishes its latest business climate survey at 9am. That will show whether German firms are benefiting from the weak euro and cheap oil. | Germany’s IFO institute publishes its latest business climate survey at 9am. That will show whether German firms are benefiting from the weak euro and cheap oil. |
| At 9.30am, the British Bankers Association reveals how many UK home loans were issued last month. | At 9.30am, the British Bankers Association reveals how many UK home loans were issued last month. |
| And this afternoon, we get the latest US durable goods report. | And this afternoon, we get the latest US durable goods report. |
| We’ll be tracking all the main events through the day | We’ll be tracking all the main events through the day |