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Version 19 Version 20
Tsipras meets Merkel amid talk of compromise - live updates Tsipras meets Merkel amid talk of compromise - live updates
(35 minutes later)
8.29pm BST20:29
Day one of the summit is over, so leaders are tucking into a tasty feast: quail, then sole, then something clever with strawberries.
EU-Celac menu: quail supreme, followed by fillet of soul and samphire, then strawberry variations, via @aureliemayembo
fillet of sole, been watching too much Live and Let Die
7.39pm BST19:397.39pm BST19:39
Italy’s finance minister has thrown his weight behind the idea of a Eurozone unemployment insurance scheme.Italy’s finance minister has thrown his weight behind the idea of a Eurozone unemployment insurance scheme.
Under this plan, a euro country would receive help from its neighbours if joblessness rose too high.Under this plan, a euro country would receive help from its neighbours if joblessness rose too high.
Writing in the Guardian, Pier Carlo Padoan argued that such a joint insurance scheme for job-seekers would help Europe prosper.Writing in the Guardian, Pier Carlo Padoan argued that such a joint insurance scheme for job-seekers would help Europe prosper.
Here’s the article:Here’s the article:
Couldn’t Brussels bail out the jobless? | Pier Carlo PadoanCouldn’t Brussels bail out the jobless? | Pier Carlo Padoan
And here’s a flavour:And here’s a flavour:
Reform of economic governance within the eurozone is also essential to improve the effectiveness of monetary union and foster greater cooperation in times of crisis. Structural reforms undertaken at national level must be better coordinated to maximise their impacts. We need to put a special focus on the social and employment side of structural policies, as an integral part of economic convergence in the euro area. Eurozone labour markets especially must be made more resilient. This could be done by introducing a common European unemployment insurance scheme.Reform of economic governance within the eurozone is also essential to improve the effectiveness of monetary union and foster greater cooperation in times of crisis. Structural reforms undertaken at national level must be better coordinated to maximise their impacts. We need to put a special focus on the social and employment side of structural policies, as an integral part of economic convergence in the euro area. Eurozone labour markets especially must be made more resilient. This could be done by introducing a common European unemployment insurance scheme.
This would complement ongoing reforms and boost the effectiveness of various national initiatives. Moreover, it would smooth demand and cushion the negative fallout of any future crises. Longer term, the eurozone should develop a proper stabilisation function to help it cope with what economists call asymmetric shocks – or events that strike one nation harder than others – leading to, among other things, a temporary spike in unemployment.This would complement ongoing reforms and boost the effectiveness of various national initiatives. Moreover, it would smooth demand and cushion the negative fallout of any future crises. Longer term, the eurozone should develop a proper stabilisation function to help it cope with what economists call asymmetric shocks – or events that strike one nation harder than others – leading to, among other things, a temporary spike in unemployment.
But this implies stepping up fiscal integration: in other words endowing the eurozone with a proper budgetary policy and a common budget, which should be part and parcel of any monetary union. It goes without saying that such fiscal integration would need to be designed to minimise moral hazard and avoid the need for permanent financial transfers between countries.But this implies stepping up fiscal integration: in other words endowing the eurozone with a proper budgetary policy and a common budget, which should be part and parcel of any monetary union. It goes without saying that such fiscal integration would need to be designed to minimise moral hazard and avoid the need for permanent financial transfers between countries.
italy's padoan goes further than france's macron, germany's gabriel. calls for eurozone unemployment insurance http://t.co/xsdxsoGW1aitaly's padoan goes further than france's macron, germany's gabriel. calls for eurozone unemployment insurance http://t.co/xsdxsoGW1a
7.21pm BST19:217.21pm BST19:21
You can see why these are called “family photos” - half the group won’t stop chatting to pose for the picture (I’m looking at you, Mariano. Just because you’re in the second row...)You can see why these are called “family photos” - half the group won’t stop chatting to pose for the picture (I’m looking at you, Mariano. Just because you’re in the second row...)
Updated at 7.22pm BSTUpdated at 7.22pm BST
7.01pm BST19:017.01pm BST19:01
Our spies in Brussels report that Angela Merkel is chatting with Evo Morales, the socialist leader of Bolivia.Our spies in Brussels report that Angela Merkel is chatting with Evo Morales, the socialist leader of Bolivia.
Sight I'd never thought I'd see: #Merkel locked in an intense conversation with @EvoMorales.Sight I'd never thought I'd see: #Merkel locked in an intense conversation with @EvoMorales.
6.44pm BST18:446.44pm BST18:44
Dutch finance minister Jeroen Dijsselbloem has declared that a deal can indeed by reached for Greece soon.Dutch finance minister Jeroen Dijsselbloem has declared that a deal can indeed by reached for Greece soon.
Dijsselbloem reckons it could be signed off by June 18, when the eurogroup of finance ministers (which he chairs) next meets. But Greece would need to produce more serious proposals.Dijsselbloem reckons it could be signed off by June 18, when the eurogroup of finance ministers (which he chairs) next meets. But Greece would need to produce more serious proposals.
He told a press conference in Helsinki that:He told a press conference in Helsinki that:
“We are still open to serious alternatives, but the alternatives of the last couple of days have not been of a high enough standard....“We are still open to serious alternatives, but the alternatives of the last couple of days have not been of a high enough standard....
“In the last talks which I had together with President Juncker and Prime Minister Tsipras, we made quite clear that there is room to put in alternative measures, but… the bottom line is that it has to add up, because Greece has to become financially independent again.”“In the last talks which I had together with President Juncker and Prime Minister Tsipras, we made quite clear that there is room to put in alternative measures, but… the bottom line is that it has to add up, because Greece has to become financially independent again.”
6.31pm BST18:316.31pm BST18:31
Reuters has also established that a three-way meeting will take place tonight. The game is afoot!Reuters has also established that a three-way meeting will take place tonight. The game is afoot!
* Merkel, France's Hollande to meet Greek PM after dinner at EU summit in brussels - spokesman - RTRS* Merkel, France's Hollande to meet Greek PM after dinner at EU summit in brussels - spokesman - RTRS
6.14pm BST18:146.14pm BST18:14
Greek media: Tsipras might accept 1% primary surplusGreek media: Tsipras might accept 1% primary surplus
Helena SmithHelena Smith
Media reports in Athens are suggesting that the Greek prime minister could yield on a major sticking point: creditors’ demand for a primary surplus of 1% of GDP this year.Media reports in Athens are suggesting that the Greek prime minister could yield on a major sticking point: creditors’ demand for a primary surplus of 1% of GDP this year.
Helena Smith reports from AthensHelena Smith reports from Athens
Regular readers will recall that the government itself proposed the budget surplus should not exceed 0.6 % in its own 47-page proposal, submitted to creditors last week.Regular readers will recall that the government itself proposed the budget surplus should not exceed 0.6 % in its own 47-page proposal, submitted to creditors last week.
The news portal Newsit.gr is quoting commissioner Pierre Moscovici as saying:The news portal Newsit.gr is quoting commissioner Pierre Moscovici as saying:
“we are closer than ever before to a deal.”“we are closer than ever before to a deal.”
An agreement may well be sealed when the Greek prime minister Alexis Tsipras sits down for talks again with EU commission president Jean Claude Juncker tomorrow.An agreement may well be sealed when the Greek prime minister Alexis Tsipras sits down for talks again with EU commission president Jean Claude Juncker tomorrow.
According to information from Greek sources, Greek PM Tsipras willing to settle on a primary surplus of 1%, as proposed by the institutions.According to information from Greek sources, Greek PM Tsipras willing to settle on a primary surplus of 1%, as proposed by the institutions.
6.07pm BST18:076.07pm BST18:07
Alexis Tsipras has helpfully tweeted a picture, showing he did indeed chat to Jean-Claude Juncker on the sidelines of the EU summit:Alexis Tsipras has helpfully tweeted a picture, showing he did indeed chat to Jean-Claude Juncker on the sidelines of the EU summit:
(OK, it might have been an aide who tweeted it; Tsipras has enough on his plate without handling social media too)(OK, it might have been an aide who tweeted it; Tsipras has enough on his plate without handling social media too)
Κατά τη διάρκεια της #EUCELAC , συναντήσεις με τον κ. @JunckerEU & την Πρόεδρο της Χιλής,κ. Michelle Bachelet.#Greece pic.twitter.com/UcOoF3zYDtΚατά τη διάρκεια της #EUCELAC , συναντήσεις με τον κ. @JunckerEU & την Πρόεδρο της Χιλής,κ. Michelle Bachelet.#Greece pic.twitter.com/UcOoF3zYDt
5.57pm BST17:575.57pm BST17:57
A German government spokesman has told Reuters it will only accept a deal approved by the three institutions (the EC, IMF and ECB). All else is “pure invention”, he says.A German government spokesman has told Reuters it will only accept a deal approved by the three institutions (the EC, IMF and ECB). All else is “pure invention”, he says.
5.57pm BST17:575.57pm BST17:57
And back with Greece:And back with Greece:
#EU Commission and #Greece to work on a deal with the approval of the #Eurogroup ~MNI citing sources#EU Commission and #Greece to work on a deal with the approval of the #Eurogroup ~MNI citing sources
Greek government could be willing to accept a 1% primary surplus target for 2015 (higher than they suggested) under certain conditionsGreek government could be willing to accept a 1% primary surplus target for 2015 (higher than they suggested) under certain conditions
5.57pm BST17:575.57pm BST17:57
Here’s Jill Treanor’s report on Mark Carney’s speech:Here’s Jill Treanor’s report on Mark Carney’s speech:
Mark Carney is to warn City traders that they should face up to 10 years in jail for rigging and abusing markets as he pledged to end “the age of irresponsibility” that has gripped the financial sector.Mark Carney is to warn City traders that they should face up to 10 years in jail for rigging and abusing markets as he pledged to end “the age of irresponsibility” that has gripped the financial sector.
The Bank of England governor acknowledged the economic harm caused by what he described as the “ethical drift” that took hold in the fixed income, currency and commodities (FICC) markets ahead of the financial crisis.The Bank of England governor acknowledged the economic harm caused by what he described as the “ethical drift” that took hold in the fixed income, currency and commodities (FICC) markets ahead of the financial crisis.
Around $150bn (£96bn) worth of fines have been imposed on major banks since 2008 depriving the real economy of $3tn of credit and potentially holding back the global economy, he said.Around $150bn (£96bn) worth of fines have been imposed on major banks since 2008 depriving the real economy of $3tn of credit and potentially holding back the global economy, he said.
Carney will use his annual Mansion House speech to top City bankers on Wednesday night to concede that the Bank of England under his predecessor, Lord King, made its own mistakes during the crisis, failing to spot the risk building up in the system and failing to pump enough liquidity into crippled financial markets. The bank’s own arcane governance “weakened the social licence of markets”, he said.Carney will use his annual Mansion House speech to top City bankers on Wednesday night to concede that the Bank of England under his predecessor, Lord King, made its own mistakes during the crisis, failing to spot the risk building up in the system and failing to pump enough liquidity into crippled financial markets. The bank’s own arcane governance “weakened the social licence of markets”, he said.
Setting out four elements of a new approach to those financial markets which have not been directly regulated by the Bank of England or the Financial Conduct Authority, Carney will say a global approach to cleaning up market practices is necessary.Setting out four elements of a new approach to those financial markets which have not been directly regulated by the Bank of England or the Financial Conduct Authority, Carney will say a global approach to cleaning up market practices is necessary.
He is expected to say: “For the best of the industry this won’t be new. This is just how you run your business. But for others who free-ride on your reputations: the age of irresponsibility is over.”He is expected to say: “For the best of the industry this won’t be new. This is just how you run your business. But for others who free-ride on your reputations: the age of irresponsibility is over.”
Full story:Full story:
Related: Mark Carney to warn rogue City traders they should face 10 years in jailRelated: Mark Carney to warn rogue City traders they should face 10 years in jail
5.13pm BST17:135.13pm BST17:13
Mark Carney calls for ten prison terms for market abuse and rate rigging, says “the age of irresponsibility” needs to endMark Carney calls for ten prison terms for market abuse and rate rigging, says “the age of irresponsibility” needs to end
Osborne says individuals who manipulate markets should be treated like criminals. No trade off between conduct and competitivenessOsborne says individuals who manipulate markets should be treated like criminals. No trade off between conduct and competitiveness
Mark Carney also acknowledges the short-comings of the Bank of England in the run-up to the 2008 crisis in his Mansion House speechMark Carney also acknowledges the short-comings of the Bank of England in the run-up to the 2008 crisis in his Mansion House speech
5.09pm BST17:095.09pm BST17:09
Bank of England governor unveils new clampdown on market abuseBank of England governor unveils new clampdown on market abuse
Away from Greece for a moment, and Bank of England governor Mark Carney has announced plans for a clampdown on abuse in financial markets after a series of scandals.Away from Greece for a moment, and Bank of England governor Mark Carney has announced plans for a clampdown on abuse in financial markets after a series of scandals.
Rogue traders in fixed income, currency and commodity markets would face up to 10 years in jail if found guilty, under the proposals.Rogue traders in fixed income, currency and commodity markets would face up to 10 years in jail if found guilty, under the proposals.
Updated at 5.09pm BSTUpdated at 5.09pm BST
5.02pm BST17:025.02pm BST17:02
More meetings. Greek prime minister Alexis Tsipras is set to meet EC president Jean-Claude Junker again tomorrow on the sidelines of the continuing summit with Latin American leaders. A Greek government official told Reuters:More meetings. Greek prime minister Alexis Tsipras is set to meet EC president Jean-Claude Junker again tomorrow on the sidelines of the continuing summit with Latin American leaders. A Greek government official told Reuters:
The two leaders exchanged views in detail [earlier today] and in a constructive climate, while they agreed to meet again tomorrow.The two leaders exchanged views in detail [earlier today] and in a constructive climate, while they agreed to meet again tomorrow.
4.36pm BST16:364.36pm BST16:36
Spanish economy minister Luis de Guindos has said creditor’ institutions have shown flexibility with Greece, adding: “Grexit is off the table, we want to keep Greece in the eurozone.”Spanish economy minister Luis de Guindos has said creditor’ institutions have shown flexibility with Greece, adding: “Grexit is off the table, we want to keep Greece in the eurozone.”
Quotes courtesy Reuters.Quotes courtesy Reuters.
Updated at 4.50pm BSTUpdated at 4.50pm BST
4.26pm BST16:264.26pm BST16:26
The reports of a possible breakthrough have sent markets sharply higher.The reports of a possible breakthrough have sent markets sharply higher.
Germany’s Dax is now up 1.54%, France’s Cac has climbed 1.1% and the FTSE 100 has added 1%. On Wall Street the Dow Jones Industrial Average is up 1.3%.Germany’s Dax is now up 1.54%, France’s Cac has climbed 1.1% and the FTSE 100 has added 1%. On Wall Street the Dow Jones Industrial Average is up 1.3%.
4.21pm BST16:214.21pm BST16:21
Meeting between #Tsipras #Hollande and #Merkel to take place tonight at @EUCouncil, around 9PM, "after dinner" says EU officialMeeting between #Tsipras #Hollande and #Merkel to take place tonight at @EUCouncil, around 9PM, "after dinner" says EU official
4.20pm BST16:204.20pm BST16:20
Here’s the Bloomberg story on Germany’s supposedly attempt to bring a deal to the table:Here’s the Bloomberg story on Germany’s supposedly attempt to bring a deal to the table:
Chancellor Angela Merkel’s government may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds, according to two people familiar with Germany’s position.Chancellor Angela Merkel’s government may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds, according to two people familiar with Germany’s position.
While the Germans still insist on a package of steps that includes higher taxes, state asset sales and less generous retirement benefits, they may settle for a clear commitment by the Greek government to a measure up front to unlock aid, said the people, who asked not to be identified discussing the government’s negotiating stance.While the Germans still insist on a package of steps that includes higher taxes, state asset sales and less generous retirement benefits, they may settle for a clear commitment by the Greek government to a measure up front to unlock aid, said the people, who asked not to be identified discussing the government’s negotiating stance.
With Greece’s aid program set to expire on June 30 and no deal in sight, the comments reflect more German flexibility than the government’s public statements. Merkel and French President Francois Hollande may hold talks with Greek Prime Minister Alexis Tsipras on the sidelines of a European Union summit on Wednesday to try to break the impasse...With Greece’s aid program set to expire on June 30 and no deal in sight, the comments reflect more German flexibility than the government’s public statements. Merkel and French President Francois Hollande may hold talks with Greek Prime Minister Alexis Tsipras on the sidelines of a European Union summit on Wednesday to try to break the impasse...
While Tsipras could be given until next year to carry out changes, such as trimming retirement benefits, he would have to initiate at least one major overhaul if he wants to get aid flowing, the people said. Neither person specified which demand Greece should fulfill.While Tsipras could be given until next year to carry out changes, such as trimming retirement benefits, he would have to initiate at least one major overhaul if he wants to get aid flowing, the people said. Neither person specified which demand Greece should fulfill.
Merkel’s chief spokesman, Steffen Seibert, and his deputy Christiane Wirtz didn’t return text messages seeking comment. A German Finance Ministry spokeswoman declined to comment.Merkel’s chief spokesman, Steffen Seibert, and his deputy Christiane Wirtz didn’t return text messages seeking comment. A German Finance Ministry spokeswoman declined to comment.
Full story here:Full story here:
Germany to Consider Offering Tsipras Staggered Deal on AidGermany to Consider Offering Tsipras Staggered Deal on Aid
4.16pm BST16:164.16pm BST16:16
Germany reportedly ready to offer Greece a staggered deal on aidGermany reportedly ready to offer Greece a staggered deal on aid
And if there is indeed a meeting there may be something to talk about, according to Bloomberg:And if there is indeed a meeting there may be something to talk about, according to Bloomberg:
GERMANY SAID TO CONSIDER OFFERING GREECE STAGGERED DEAL ON AID. GERMANY SAID TO CONSIDER SETTLING FOR ONE GREEK REFORM UP FRONT, BBG reportsGERMANY SAID TO CONSIDER OFFERING GREECE STAGGERED DEAL ON AID. GERMANY SAID TO CONSIDER SETTLING FOR ONE GREEK REFORM UP FRONT, BBG reports
Updated at 4.17pm BSTUpdated at 4.17pm BST
4.15pm BST16:154.15pm BST16:15
And there may well be a meeting after all:And there may well be a meeting after all:
Hollande suggests there might be a meeting with Greek PM @atsipras In wings of summit pic.twitter.com/1O4AgxvJtSHollande suggests there might be a meeting with Greek PM @atsipras In wings of summit pic.twitter.com/1O4AgxvJtS
4.13pm BST16:134.13pm BST16:13
The €2.3bn increase in the emergency liquidity assistance cap for Greek banks follows a €500m increase last week. It is the highest weekly rise since mid-February.The €2.3bn increase in the emergency liquidity assistance cap for Greek banks follows a €500m increase last week. It is the highest weekly rise since mid-February.
The incremental moves by the ECB keep the pressure on Athens to come up with a deal with its creditors.The incremental moves by the ECB keep the pressure on Athens to come up with a deal with its creditors.
Updated at 4.15pm BSTUpdated at 4.15pm BST
3.59pm BST15:593.59pm BST15:59
But at least Greece appears to be getting continued support from the European Central Bank through the Emergency Liquidity Assistance:But at least Greece appears to be getting continued support from the European Central Bank through the Emergency Liquidity Assistance:
ECB said to raise Greek ELA ceiling to €83.0 Bln from €80.7 BlnECB said to raise Greek ELA ceiling to €83.0 Bln from €80.7 Bln
3.54pm BST15:543.54pm BST15:54
Our correspondent Helena Smith flags up some possible protests tomorrow:Our correspondent Helena Smith flags up some possible protests tomorrow:
#Greek communist party unionists declare "combative resistance" to the "new memorandum" (bailout) being prepared 4 the country#Greek communist party unionists declare "combative resistance" to the "new memorandum" (bailout) being prepared 4 the country
#Greece we may see some fun demos trm in #Athens as commie party militants protest leftwing Syriza gov's econ policies#Greece we may see some fun demos trm in #Athens as commie party militants protest leftwing Syriza gov's econ policies
Updated at 3.57pm BSTUpdated at 3.57pm BST
3.06pm BST15:063.06pm BST15:06
After days of decline, most markets are regaining a little of the lost ground at the moment. Wall Street has opened stronger, with the Dow Jones Industrial Average up 142 points or 0.8%.After days of decline, most markets are regaining a little of the lost ground at the moment. Wall Street has opened stronger, with the Dow Jones Industrial Average up 142 points or 0.8%.
In Europe Germany’s Dax has added 1.28% and France’s Cac is up 0.75%. In the UK, the FTSE 100 has added 0.6% but in Athens the Greek market has bucked the optimistic mood, down 0.9%.In Europe Germany’s Dax has added 1.28% and France’s Cac is up 0.75%. In the UK, the FTSE 100 has added 0.6% but in Athens the Greek market has bucked the optimistic mood, down 0.9%.
Traders said the recent sell-off may have gone too far, although with the continuing inability to get a deal between Greece and its creditors, investors are likely to remain nervous.Traders said the recent sell-off may have gone too far, although with the continuing inability to get a deal between Greece and its creditors, investors are likely to remain nervous.
3.00pm BST15:003.00pm BST15:00
Meanwhile the Greek economy continues to struggle:Meanwhile the Greek economy continues to struggle:
According to Greece's retailers association, about 59 businesses close down and some 613 jobs are being lost each dayAccording to Greece's retailers association, about 59 businesses close down and some 613 jobs are being lost each day
2.54pm BST14:542.54pm BST14:54
Greece: No-one told us there was a problem....Greece: No-one told us there was a problem....
Helena SmithHelena Smith
Betwixt all the smiles, hugs and backslapping in Brussels this afternoon, the Greek government has issued a strongly-worded statement.Betwixt all the smiles, hugs and backslapping in Brussels this afternoon, the Greek government has issued a strongly-worded statement.
It bemoans the fact that they (apparently) learned about the negative response to its latest reform package proposal via today’s EC press conference and not from the EU monetary affairs commissioner himself.It bemoans the fact that they (apparently) learned about the negative response to its latest reform package proposal via today’s EC press conference and not from the EU monetary affairs commissioner himself.
The leftist-led administration says:The leftist-led administration says:
“The Greek side finds itself in the unfortunate position to have to point out that it was never informed about its proposals by Mr Pierre Moscovici.”“The Greek side finds itself in the unfortunate position to have to point out that it was never informed about its proposals by Mr Pierre Moscovici.”
EU officials, though, insist Moscovici told the Greeks that their plan isn’t good enough:EU officials, though, insist Moscovici told the Greeks that their plan isn’t good enough:
EU official:@pierremoscovici talked 2 @nikospappas16 telling him that GR proposals not in line with discussions btw @atsipras & @JunckerEUEU official:@pierremoscovici talked 2 @nikospappas16 telling him that GR proposals not in line with discussions btw @atsipras & @JunckerEU
Updated at 2.56pm BSTUpdated at 2.56pm BST
2.29pm BST14:292.29pm BST14:29
It’s not a formal meeting, but we can report that Angela Merkel and Alexis Tsipras have shaken hands in Brussels, and shared a few words.It’s not a formal meeting, but we can report that Angela Merkel and Alexis Tsipras have shaken hands in Brussels, and shared a few words.
2.24pm BST14:242.24pm BST14:24
And they’re off....And they’re off....
#EUCELAC Summit 2015 Opening remarks @eucopresident @JunckerEU #Correa @Presidencia_ec http://t.co/VxbZrJWWp0 pic.twitter.com/v9C8gMmp2h#EUCELAC Summit 2015 Opening remarks @eucopresident @JunckerEU #Correa @Presidencia_ec http://t.co/VxbZrJWWp0 pic.twitter.com/v9C8gMmp2h
2.22pm BST14:222.22pm BST14:22
Angela Merkel will urge Alexis Tsipras to keep Greece’s officials negotiating with creditors in Brussels, when they speak on the sidelines of today’s EU summit.Angela Merkel will urge Alexis Tsipras to keep Greece’s officials negotiating with creditors in Brussels, when they speak on the sidelines of today’s EU summit.
I’ve taken the quotes from Reuters:I’ve taken the quotes from Reuters:
“The message will be: the talks with the three institutions must be continued,” said Merkel on arrival in Brussels, referring to the European Commission, International Monetary Fund (IMF) and European Central Bank.“The message will be: the talks with the three institutions must be continued,” said Merkel on arrival in Brussels, referring to the European Commission, International Monetary Fund (IMF) and European Central Bank.
“The goal is, we want to keep Greece in the euro zone,” she said, adding: “Where there is a will, there is a way.”“The goal is, we want to keep Greece in the euro zone,” she said, adding: “Where there is a will, there is a way.”
1.42pm BST13:421.42pm BST13:42
Tsipras still gets some Juncker love though... pic.twitter.com/ftGX13rxduTsipras still gets some Juncker love though... pic.twitter.com/ftGX13rxdu
1.38pm BST13:381.38pm BST13:38
All isn’t lost. Jean-Claude Juncker just gave Alexis Tsipras a hug in Brussels.All isn’t lost. Jean-Claude Juncker just gave Alexis Tsipras a hug in Brussels.
Despite the EC president’s unhappiness over the Greek PM’s criticism of the creditors last week, the two men managed to put on a show of solidarity, at least.Despite the EC president’s unhappiness over the Greek PM’s criticism of the creditors last week, the two men managed to put on a show of solidarity, at least.
Talks at awkward stage, but Juncker gives PM Tsipras a hug #Greece #CELAC pic.twitter.com/HWkU4rYiavTalks at awkward stage, but Juncker gives PM Tsipras a hug #Greece #CELAC pic.twitter.com/HWkU4rYiav
A hug is a pretty standard greeting in the world of Juncker. Favoured colleagues run the risk of a sloppy kiss, while Hungary’s dictatorial prime minister earned a gentle (ish) slap last month.A hug is a pretty standard greeting in the world of Juncker. Favoured colleagues run the risk of a sloppy kiss, while Hungary’s dictatorial prime minister earned a gentle (ish) slap last month.
1.32pm BST13:321.32pm BST13:32
Merkel: Where there's a will, there's a wayMerkel: Where there's a will, there's a way
Angela Merkel has arrived in Brussels, telling reporters that “of course” she’ll meet with Alexis Tsipras if the Greek PM would like to.Angela Merkel has arrived in Brussels, telling reporters that “of course” she’ll meet with Alexis Tsipras if the Greek PM would like to.
So, the date is on!So, the date is on!
The German chancellor also declared that ‘Where there’s a will, there’s a way’, when asked about the prospects for a breakthrough....The German chancellor also declared that ‘Where there’s a will, there’s a way’, when asked about the prospects for a breakthrough....
MERKEL SAYS POSSIBLE MEETING WITH TSIPRAS IN BRUSSELS TODAY  MERKEL SAYS `WHERE THERE'S A WILL THERE'S A WAY #GreeceMERKEL SAYS POSSIBLE MEETING WITH TSIPRAS IN BRUSSELS TODAY  MERKEL SAYS `WHERE THERE'S A WILL THERE'S A WAY #Greece
1.12pm BST13:121.12pm BST13:12
Looks like this Europe-LatAm summit in Brussels is turning into another #Greece meeting behind the scenes. At least Argentina is cheering.Looks like this Europe-LatAm summit in Brussels is turning into another #Greece meeting behind the scenes. At least Argentina is cheering.
1.05pm BST13:051.05pm BST13:05
Alexis Tsipras has now raced from the Argentinian delegation to meet with European Council chief Donald Tusk.Alexis Tsipras has now raced from the Argentinian delegation to meet with European Council chief Donald Tusk.
Meeting with the President of the European Council, Mr. @donaldtusk at #EUCELAC #Greece pic.twitter.com/3w4TQVUoKcMeeting with the President of the European Council, Mr. @donaldtusk at #EUCELAC #Greece pic.twitter.com/3w4TQVUoKc
Back in March, Tusk told the Guardian that Greece is a political and geostrategic problem, not simply a financial one.Back in March, Tusk told the Guardian that Greece is a political and geostrategic problem, not simply a financial one.
“We have to understand, Greece is not only a question of money.... “Can you imagine Europe without Greece?“We have to understand, Greece is not only a question of money.... “Can you imagine Europe without Greece?
The former Polish PM is also a firm supporter of Russian sanctions, so may not be impressed by suggestions that Moscow could possibly help Athens.The former Polish PM is also a firm supporter of Russian sanctions, so may not be impressed by suggestions that Moscow could possibly help Athens.
12.49pm BST12:4912.49pm BST12:49
Greece's @tsipras_eu is in Brussels & meeting with Argentina's Minister of Foreign Affairs, Hector Timerman, Talk of debt restructuring??Greece's @tsipras_eu is in Brussels & meeting with Argentina's Minister of Foreign Affairs, Hector Timerman, Talk of debt restructuring??
12.47pm BST12:4712.47pm BST12:47
Here’s a photo confirming that Greece’s pharmacies are shuttered todayHere’s a photo confirming that Greece’s pharmacies are shuttered today
As we flagged up this morning, it’s a protest against plans to liberalise the sector (so Greeks could buy over-the-counter drugs at the supermarket)As we flagged up this morning, it’s a protest against plans to liberalise the sector (so Greeks could buy over-the-counter drugs at the supermarket)
Updated at 12.50pm BSTUpdated at 12.50pm BST
12.36pm BST12:3612.36pm BST12:36
Alexis Tsipras got straight down to business in Brussels, with a sit-down meeting with the Argentinian delegation:Alexis Tsipras got straight down to business in Brussels, with a sit-down meeting with the Argentinian delegation:
I'm currently in Brussels & meeting w/Argentina's Minister of Foreign Affairs, Mr. Hector Timerman #EUCELAC #Greece pic.twitter.com/FTEBtL9EJUI'm currently in Brussels & meeting w/Argentina's Minister of Foreign Affairs, Mr. Hector Timerman #EUCELAC #Greece pic.twitter.com/FTEBtL9EJU
Little advice on defaulting? https://t.co/qkHpIMrGxsLittle advice on defaulting? https://t.co/qkHpIMrGxs
12.27pm BST12:2712.27pm BST12:27
Will she or won’t she?Will she or won’t she?
Germany is leaving the issue of a meeting between Angela Merkel and Alexis Tsipras hanging tantalisingly in the air. A spokesman in Berlin won’t confirm or deny any plans, but says the opportunity is there.Germany is leaving the issue of a meeting between Angela Merkel and Alexis Tsipras hanging tantalisingly in the air. A spokesman in Berlin won’t confirm or deny any plans, but says the opportunity is there.
12.22pm BST12:2212.22pm BST12:22
Tsipras to meet Tusk soonTsipras to meet Tusk soon
The Greek prime minister will meet the president of the European Council, Donald Tusk, at 13.30 Brussels time on Wednesday, Reuters reports.The Greek prime minister will meet the president of the European Council, Donald Tusk, at 13.30 Brussels time on Wednesday, Reuters reports.
So, in around eight minutes....So, in around eight minutes....
Updated at 12.29pm BSTUpdated at 12.29pm BST
12.17pm BST12:1712.17pm BST12:17
Alexis Tsipras has now arrived in Brussels for today’s EU summit with Carribbean and Latin American nations. He’s still smiling, despite recent knockbacks.Alexis Tsipras has now arrived in Brussels for today’s EU summit with Carribbean and Latin American nations. He’s still smiling, despite recent knockbacks.
11.52am BST11:5211.52am BST11:52
The FT’s Peter Spiegel explains why Greece’s latest proposal falls short:The FT’s Peter Spiegel explains why Greece’s latest proposal falls short:
The Greek submission calls for a primary budget surplus -- revenues less expenses when interest on sovereign debt are not counted -- of 0.75 per cent of gross domestic product this year, rising to 1.75 per cent next year and 2.5 per cent in 2017. That is higher than originally suggested in a Greek counter-proposal, but still below the 1 per cent, 2 per cent and 3 per cent in an offer by creditors presented by Mr Juncker.The Greek submission calls for a primary budget surplus -- revenues less expenses when interest on sovereign debt are not counted -- of 0.75 per cent of gross domestic product this year, rising to 1.75 per cent next year and 2.5 per cent in 2017. That is higher than originally suggested in a Greek counter-proposal, but still below the 1 per cent, 2 per cent and 3 per cent in an offer by creditors presented by Mr Juncker.
Officials believed that Mr Tsipras had agreed to the creditors’ targets during the Juncker meeting and were preparing a new plan on how to hit those levels. Instead, the new Greek submission changed the targets and provided no new proposals on underlying economic policies.Officials believed that Mr Tsipras had agreed to the creditors’ targets during the Juncker meeting and were preparing a new plan on how to hit those levels. Instead, the new Greek submission changed the targets and provided no new proposals on underlying economic policies.
So, commissioner Pierre Moscovici has now demanded a rewrite, according to spokesman Margaritis Schinas today.....So, commissioner Pierre Moscovici has now demanded a rewrite, according to spokesman Margaritis Schinas today.....
Back to the drawing board. Again. @SpiegelPeter on the latest Greek reform plans >> http://t.co/spAUrCjhYIBack to the drawing board. Again. @SpiegelPeter on the latest Greek reform plans >> http://t.co/spAUrCjhYI
Whatever the background if #Greece & #euro area fail over primary surplus difference of 0.25 pts, history will not be kind to those involvedWhatever the background if #Greece & #euro area fail over primary surplus difference of 0.25 pts, history will not be kind to those involved
11.24am BST11:2411.24am BST11:24
EC: Juncker has no plans to meet TsiprasEC: Juncker has no plans to meet Tsipras
The EC’s top spokesman, Margaritis Schinas, is facing the Brussels press pack now.The EC’s top spokesman, Margaritis Schinas, is facing the Brussels press pack now.
They’re eager to ask about Greece, and he’s equally keen not to give too much away.They’re eager to ask about Greece, and he’s equally keen not to give too much away.
Asked about the state of play with negotiations, he says that the ball is “clearly” in Greece’s court, and says the latest proposals fall short of what Greece has promised.Asked about the state of play with negotiations, he says that the ball is “clearly” in Greece’s court, and says the latest proposals fall short of what Greece has promised.
Ow - EU's @MargSchinas says new Greek reform plan 'does not reflect' state of Juncker-Tsipras talks last weekOw - EU's @MargSchinas says new Greek reform plan 'does not reflect' state of Juncker-Tsipras talks last week
Schinas declines to say whether the EC is insisting on a 1% budget surplus this year. That’s a matter for the negotiating table, not the press room, he says.Schinas declines to say whether the EC is insisting on a 1% budget surplus this year. That’s a matter for the negotiating table, not the press room, he says.
Will president Juncker meet with Alexis Tsipras today?Will president Juncker meet with Alexis Tsipras today?
There is nothing scheduled at the moment, Schinas replies. [reminder, there are reports that Juncker has lost patience with Greece now]There is nothing scheduled at the moment, Schinas replies. [reminder, there are reports that Juncker has lost patience with Greece now]
@SpiegelPeter @PoliticoRyan . . . and in #BILD! pic.twitter.com/BnbExbhtXg@SpiegelPeter @PoliticoRyan . . . and in #BILD! pic.twitter.com/BnbExbhtXg
Updated at 11.28am BSTUpdated at 11.28am BST
10.57am BST10:5710.57am BST10:57
From Brussels, Spanish journalists Jorge Valero reports that creditors aren’t budging on Greek budget surplus targets.From Brussels, Spanish journalists Jorge Valero reports that creditors aren’t budging on Greek budget surplus targets.
They want Athens to commit to a primary surplus of 1% of GDP this year, rejecting the 0.75% it is offering, he says.They want Athens to commit to a primary surplus of 1% of GDP this year, rejecting the 0.75% it is offering, he says.
EU/#IMF insist #Greece must meet 1% primary surplus target this year, although mor flexible on measures (including pensions) if they r soundEU/#IMF insist #Greece must meet 1% primary surplus target this year, although mor flexible on measures (including pensions) if they r sound
Institutions are waiting for a new proposal from #Greece including primary surplus of 1% for 2015 (a must) and sound measures to achieve itInstitutions are waiting for a new proposal from #Greece including primary surplus of 1% for 2015 (a must) and sound measures to achieve it
Updated at 11.09am BSTUpdated at 11.09am BST
10.56am BST10:5610.56am BST10:56
Leaders are arriving in Brussels for the Latin American summit; Brazilian President Dilma Rousseff is currently meeting Belgium’s Prime minister Charles Michel:Leaders are arriving in Brussels for the Latin American summit; Brazilian President Dilma Rousseff is currently meeting Belgium’s Prime minister Charles Michel:
10.53am BST10:5310.53am BST10:53
Own up, have any Greek readers been ordering owls?Own up, have any Greek readers been ordering owls?
From today's @dailytelegraph announcements the middle one has got be a coded message between spies surely? pic.twitter.com/iphMHdhQZNFrom today's @dailytelegraph announcements the middle one has got be a coded message between spies surely? pic.twitter.com/iphMHdhQZN
Could it be related to ancient Greek currencies? Oliver Clarke of New College (hurrah!) reckons it might:Could it be related to ancient Greek currencies? Oliver Clarke of New College (hurrah!) reckons it might:
@RobDexPA @GeneralBoles @dailytelegraph Owls to Athens was the classical phrase equivalent of coal to Newcastle, from Athenian coinage@RobDexPA @GeneralBoles @dailytelegraph Owls to Athens was the classical phrase equivalent of coal to Newcastle, from Athenian coinage
10.41am BST10:4110.41am BST10:41
Despite the deadlock, Greece has just successfully auctioned almost €3bn of short-term debt.Despite the deadlock, Greece has just successfully auctioned almost €3bn of short-term debt.
That doesn’t solve its funding crisis, though. This money will be used to repay other short-term debt which matures shortly.That doesn’t solve its funding crisis, though. This money will be used to repay other short-term debt which matures shortly.
*GREECE SELLS TREASURY BILLS Well done !!!*GREECE SELLS TREASURY BILLS Well done !!!
More relevant: *INVESTORS BUY GREEK TREASURY BILLS https://t.co/h0hU56HEZWMore relevant: *INVESTORS BUY GREEK TREASURY BILLS https://t.co/h0hU56HEZW
The buyers are probably Greek domestic banks, who are ‘rolling over’ their Greek sovereign debt holdings.The buyers are probably Greek domestic banks, who are ‘rolling over’ their Greek sovereign debt holdings.
Greece’s latest proposal asks the European Central Bank to lift the cap which stops Greek banks from buying more of these bond - that seems very unlikely unless a deal is in sight.Greece’s latest proposal asks the European Central Bank to lift the cap which stops Greek banks from buying more of these bond - that seems very unlikely unless a deal is in sight.
10.29am BST10:2910.29am BST10:29
10.28am BST10:2810.28am BST10:28
Greece remains deep in deflation, as prices continue to be forced down across the country.Greece remains deep in deflation, as prices continue to be forced down across the country.
Elstat reports that the Greek consumer prices index fell by 2.1% year-on-year in May, unchanged from April.Elstat reports that the Greek consumer prices index fell by 2.1% year-on-year in May, unchanged from April.
10.26am BST10:2610.26am BST10:26
If Angela Merkel and Francois Hollande do give Alexis Tsipras the cold shoulder tonight, the Greek crisis could then switch to the capital of Slovakia:If Angela Merkel and Francois Hollande do give Alexis Tsipras the cold shoulder tonight, the Greek crisis could then switch to the capital of Slovakia:
If no meeting tonite between @atsipras & #Merkollande, action moves to #Bratislava (!). Euro working group meeting there at end of week.If no meeting tonite between @atsipras & #Merkollande, action moves to #Bratislava (!). Euro working group meeting there at end of week.
Amid rumors that Tsipras-Merkel-Hollande meet may not happen, Greek gov source reports no feedback to revised proposals.Amid rumors that Tsipras-Merkel-Hollande meet may not happen, Greek gov source reports no feedback to revised proposals.
Updated at 10.27am BSTUpdated at 10.27am BST
10.22am BST10:2210.22am BST10:22
Demonstrators are already gathering in Brussels ahead of today’s summit:Demonstrators are already gathering in Brussels ahead of today’s summit:
#EU #CELAC summit has not startet yet, but first #Mexico protesters with good music on #Brussels streets. pic.twitter.com/Pg1Mmk8Bkr#EU #CELAC summit has not startet yet, but first #Mexico protesters with good music on #Brussels streets. pic.twitter.com/Pg1Mmk8Bkr
10.12am BST10:1210.12am BST10:12
Rumours are swirling that tonight’s informal meeting between the leaders of Greece, Germany and France might not happen!Rumours are swirling that tonight’s informal meeting between the leaders of Greece, Germany and France might not happen!
A French insider has told Reuters that nothing’s scheduled in Hollande’s diary....A French insider has told Reuters that nothing’s scheduled in Hollande’s diary....
“No meeting is planned at this stage - we’ll see what happens when we get there.”“No meeting is planned at this stage - we’ll see what happens when we get there.”
German officials are giving a similar line:German officials are giving a similar line:
*GERMAN GOVT OFFICIAL SAYS MERKEL-TSIPRAS TALKS NOT CONFIRMED*GERMAN GOVT OFFICIAL SAYS MERKEL-TSIPRAS TALKS NOT CONFIRMED
So, Alexis Tsipras faces the prospect of being snubbed by the leaders of the eurozone’s two largest members at the EU-Latin American/Caribbean summit.So, Alexis Tsipras faces the prospect of being snubbed by the leaders of the eurozone’s two largest members at the EU-Latin American/Caribbean summit.
10.06am BST10:0610.06am BST10:06
Helena SmithHelena Smith
Over in Greece, pharmacists have gone on strike.Over in Greece, pharmacists have gone on strike.
They are protesting against foreign-imposed demands that the pharmaceuticals industry opens up to allow customers to buy medicines in supermarkets.They are protesting against foreign-imposed demands that the pharmaceuticals industry opens up to allow customers to buy medicines in supermarkets.
Helena Smith reportsHelena Smith reports
Up and down the country pharmacies have brought down their shutters in a mass display of defiance over the industry being liberalized.Up and down the country pharmacies have brought down their shutters in a mass display of defiance over the industry being liberalized.
Pharmacists are enraged, that five years into the crisis, supermarkets will now be allowed to sell medications, a move that creditors say is long overdue and will boost competitiveness but which industry figures insist will undermine business.Pharmacists are enraged, that five years into the crisis, supermarkets will now be allowed to sell medications, a move that creditors say is long overdue and will boost competitiveness but which industry figures insist will undermine business.
The anti-austerity government is clearly taking sides. Addressing the matter yesterday the health minister Panagiotis Kouroumblis said:The anti-austerity government is clearly taking sides. Addressing the matter yesterday the health minister Panagiotis Kouroumblis said:
“The institutions [EU and IMF] have obsessions which unfortunately cannot be explained … as there is no problem with the issue of competitiveness.“The institutions [EU and IMF] have obsessions which unfortunately cannot be explained … as there is no problem with the issue of competitiveness.
We are fighting to [stop] this obsession becoming reality. We will fight until the last moment.” We are fighting to [stop] this obsession becoming reality. We will fight until the last moment.”
Greece’s lenders, though, believe that Greece’s pharmacy sector lacks competition. They have also pushed for rules on opening hours, and how many customers each chemist can serve, to be liberalised too.Greece’s lenders, though, believe that Greece’s pharmacy sector lacks competition. They have also pushed for rules on opening hours, and how many customers each chemist can serve, to be liberalised too.
9.35am BST09:359.35am BST09:35
Michael Fuchs also denied that the German parliament could split over Greece.Michael Fuchs also denied that the German parliament could split over Greece.
Fuchs, who is deputy chairman of the CDU party, reckons that European leaders simply won’t agreed a deal that isn’t broadly similar to the old plan.Fuchs, who is deputy chairman of the CDU party, reckons that European leaders simply won’t agreed a deal that isn’t broadly similar to the old plan.
That means Angela Merkel wouldn’t need to put contentious plans before the Bundestag.That means Angela Merkel wouldn’t need to put contentious plans before the Bundestag.
And while he hopes Greece says in the eurozone, he doesn’t accept that Grexit would scupper the single currency (as Tsipras argued in an interview yesterday).And while he hopes Greece says in the eurozone, he doesn’t accept that Grexit would scupper the single currency (as Tsipras argued in an interview yesterday).
German CDU lawmaker Fuchs at BBG TV: We want #Greece to stay in the Euro BUT Euro won't fail without Greece. #GrexitGerman CDU lawmaker Fuchs at BBG TV: We want #Greece to stay in the Euro BUT Euro won't fail without Greece. #Grexit
#Germany CDU MP Fuchs: If #IMF pulls out [of #Greece programme], Germany will too.#Germany CDU MP Fuchs: If #IMF pulls out [of #Greece programme], Germany will too.
Updated at 9.39am BSTUpdated at 9.39am BST
9.29am BST09:299.29am BST09:29
Merkel ally: Greece's proposals aren't seriousMerkel ally: Greece's proposals aren't serious
An influential member of Angela Merkel’s CDU party, Michael Fuchs, has just cast serious doubt on the chances of a breakthrough soon, in a Bloomberg TV interview.An influential member of Angela Merkel’s CDU party, Michael Fuchs, has just cast serious doubt on the chances of a breakthrough soon, in a Bloomberg TV interview.
Fuchs, who is the deputy parliamentary floor leader of Merkel’s conservative bloc, also criticised the Greek government’s latest proposal, which includes help from the eurozone bailout fund, and the ECB, to cover its funding needs this summer.Fuchs, who is the deputy parliamentary floor leader of Merkel’s conservative bloc, also criticised the Greek government’s latest proposal, which includes help from the eurozone bailout fund, and the ECB, to cover its funding needs this summer.
Here’s the key points:Here’s the key points:
Can Angela Merkel make progress with Alexis Tsipras at today’s EU summit?Can Angela Merkel make progress with Alexis Tsipras at today’s EU summit?
It’s very difficult, becuase Mr Tsipras’s new proposal is ‘non-negotiable’, Fuchs replies.It’s very difficult, becuase Mr Tsipras’s new proposal is ‘non-negotiable’, Fuchs replies.
It is far away from the bailout extension we agreed in February and what we agreed with Mr Samaras (Greece’s former PM).It is far away from the bailout extension we agreed in February and what we agreed with Mr Samaras (Greece’s former PM).
If there is any change to the second [bailout] package, it must go to the Bundestag.If there is any change to the second [bailout] package, it must go to the Bundestag.
What they do at the moment is non-negotiable.What they do at the moment is non-negotiable.
Can a deal be reached in time?Can a deal be reached in time?
I hope a deal can be reached. But it is fully and only on Greece’ side.I hope a deal can be reached. But it is fully and only on Greece’ side.
Fuchs insists that he doesn’t want a Grexit:Fuchs insists that he doesn’t want a Grexit:
We want Greece to stay in the euro, very much. It is our wish and will.....We want Greece to stay in the euro, very much. It is our wish and will.....
But they need to come up with serious proposals, and what they are coming up with now is not serious at all.But they need to come up with serious proposals, and what they are coming up with now is not serious at all.
"What Greece is now proposing is not serious" @drmfuchs tells @flacqua from Berlin. pic.twitter.com/1DzuZZubpD"What Greece is now proposing is not serious" @drmfuchs tells @flacqua from Berlin. pic.twitter.com/1DzuZZubpD
Fuchs also criticised Greece’s finance minister Yanis Varoufakis, for telling Germany that they won’t get back all the money loaned to Greece and then asking for more help.Fuchs also criticised Greece’s finance minister Yanis Varoufakis, for telling Germany that they won’t get back all the money loaned to Greece and then asking for more help.
It is very hard to understand his position, Fuch concluded.It is very hard to understand his position, Fuch concluded.
(I think that’s a reference to Varoufakis’s speech in Berlin on Monday night.)(I think that’s a reference to Varoufakis’s speech in Berlin on Monday night.)
Updated at 11.02am BSTUpdated at 11.02am BST
9.11am BST09:119.11am BST09:11
Newsflash from Athens: Greece hasn’t had any feedback on its latest proposals, according to a government official.Newsflash from Athens: Greece hasn’t had any feedback on its latest proposals, according to a government official.
GREECE HAD NO FEEDBACK FROM CREDITORS ON ITS PROPOSALS: GOVTGREECE HAD NO FEEDBACK FROM CREDITORS ON ITS PROPOSALS: GOVT
Not encouraging...Not encouraging...
9.04am BST09:049.04am BST09:04
Today’s EU-Latin American summit begins at 2pm Brussels time (1pm BST).Today’s EU-Latin American summit begins at 2pm Brussels time (1pm BST).
Alexis Tsipras’s best hope of cornering Angela Merkel and Francois Hollande for talks (assuming it happens) is probably in the evening.Alexis Tsipras’s best hope of cornering Angela Merkel and Francois Hollande for talks (assuming it happens) is probably in the evening.
Here’s the scheduleHere’s the schedule
The summit continues tomorrow.The summit continues tomorrow.
Updated at 9.08am BSTUpdated at 9.08am BST
8.53am BST08:538.53am BST08:53
Here we go! The 10 year bond (bund) yield of Germany that dropped so recently to 0.07% has now reached 1% #ECB #QEHere we go! The 10 year bond (bund) yield of Germany that dropped so recently to 0.07% has now reached 1% #ECB #QE
German 10y yield now = 1.01% German 10y yield on day #ECB announced QE = 0.45%German 10y yield now = 1.01% German 10y yield on day #ECB announced QE = 0.45%
8.46am BST08:468.46am BST08:46
Back in the UK, the boss of Sainsbury has blamed “strong levels of food deflation” and “highly competitive pricing” for its latest drop in takings. Good news for consumers!Back in the UK, the boss of Sainsbury has blamed “strong levels of food deflation” and “highly competitive pricing” for its latest drop in takings. Good news for consumers!
Related: Sainsbury's sales fall for sixth consecutive quarterRelated: Sainsbury's sales fall for sixth consecutive quarter
8.37am BST08:378.37am BST08:37
CLUNK. The yield on Germany’s 10-year bonds just hit 1%, up from 0.96% last night.CLUNK. The yield on Germany’s 10-year bonds just hit 1%, up from 0.96% last night.
That means Germany’s benchmark government debt is offering its highest rate of return since last September 2014.That means Germany’s benchmark government debt is offering its highest rate of return since last September 2014.
A blow to any investor who piled into safe-haven German debt in recent months, helping to drive the yield (or interest rate) to almost zero.A blow to any investor who piled into safe-haven German debt in recent months, helping to drive the yield (or interest rate) to almost zero.
The City mantra used to be “never sell the bund”. But not any more.....The City mantra used to be “never sell the bund”. But not any more.....
Never ever sell the OH WAIT pic.twitter.com/0Lg5YprNHHNever ever sell the OH WAIT pic.twitter.com/0Lg5YprNHH
Updated at 8.52am BSTUpdated at 8.52am BST
8.34am BST08:348.34am BST08:34
European markets fall againEuropean markets fall again
European stock markets are falling again this morning, having hit their lowest level since mid-February yesterday:European stock markets are falling again this morning, having hit their lowest level since mid-February yesterday:
Greece is one factor, of course, but traders are also reacting to the selloff in the government bond market.Greece is one factor, of course, but traders are also reacting to the selloff in the government bond market.
Bond prices are falling, pushing yields higher, as the long bull market begins to unwind....Bond prices are falling, pushing yields higher, as the long bull market begins to unwind....
#Germany's Dax continues to drop on Bund rout. pic.twitter.com/jNPX8D6bS2#Germany's Dax continues to drop on Bund rout. pic.twitter.com/jNPX8D6bS2
The general mood is the markets is quite glum, as Christ Weston of IG puts it:The general mood is the markets is quite glum, as Christ Weston of IG puts it:
There is little conviction in equity buying at present and clearly a catalyst is missing that would provide the confidence needed.There is little conviction in equity buying at present and clearly a catalyst is missing that would provide the confidence needed.
8.25am BST08:258.25am BST08:25
Deadline not this week, but June 30. Two more weeks of this madness. And don’t expect any heroics from Merkel. http://t.co/5k79LAUuoqDeadline not this week, but June 30. Two more weeks of this madness. And don’t expect any heroics from Merkel. http://t.co/5k79LAUuoq
8.21am BST08:218.21am BST08:21
Even though Greece is running short of allies in the eurozone, Wolfango Piccoli of Teneo Intelligence believes Tsipras will eventually be given a ‘take-it or leave it” deal.Even though Greece is running short of allies in the eurozone, Wolfango Piccoli of Teneo Intelligence believes Tsipras will eventually be given a ‘take-it or leave it” deal.
He’s on Bloomberg TV, explaining that:He’s on Bloomberg TV, explaining that:
If you look around Europe, in Berlin, Paris, Frankfurt, the position has not change, they want Greece to stay in the eurozone”If you look around Europe, in Berlin, Paris, Frankfurt, the position has not change, they want Greece to stay in the eurozone”
But that deal could be hard to sell at home, and could potentially split the Syriza coalition of left-wing groups.But that deal could be hard to sell at home, and could potentially split the Syriza coalition of left-wing groups.
If Tsipras takes it to parliament it will get passed, because the opposition will support it.If Tsipras takes it to parliament it will get passed, because the opposition will support it.
But at the end, Tsipras might not have a majority any more.But at the end, Tsipras might not have a majority any more.
8.10am BST08:108.10am BST08:10
Roger Bootle, the managing director of Capital Economics, believes it’s “only a matter of time” until Greece leaves the euro , and it would be in both sides interest to do so.Roger Bootle, the managing director of Capital Economics, believes it’s “only a matter of time” until Greece leaves the euro , and it would be in both sides interest to do so.
This is an economy where output has fallen by 25% - that is catastrophic, similar to the US Great Depression, he told Bloomberg TV.This is an economy where output has fallen by 25% - that is catastrophic, similar to the US Great Depression, he told Bloomberg TV.
We’ve seen nothing like it in an advance economy in the second half of the 20th century.We’ve seen nothing like it in an advance economy in the second half of the 20th century.
But doesn’t that prove that Greece must reform its economy, as its lenders demand?But doesn’t that prove that Greece must reform its economy, as its lenders demand?
Reforms are needed, Bootle agrees, but you simply cannot solve a problem of lack of demand with structural reforms.Reforms are needed, Bootle agrees, but you simply cannot solve a problem of lack of demand with structural reforms.
In fact, some of those structural reforms will make the demand problem worse.”In fact, some of those structural reforms will make the demand problem worse.”
Updated at 8.38am BSTUpdated at 8.38am BST
7.57am BST07:577.57am BST07:57
Helena SmithHelena Smith
Angela Merkel and Francois Hollande are not the only leaders the Greek prime minister Alexis Tsipras will be meeting on the sidelines of today’s EU/Latin America summit.Angela Merkel and Francois Hollande are not the only leaders the Greek prime minister Alexis Tsipras will be meeting on the sidelines of today’s EU/Latin America summit.
Helena Smith has the details:.Helena Smith has the details:.
The Greek government has announced that Tsipras will be holding talks with a number of leaders from the region - many heroes of the radical leftist. In order of appearance, the Greek government has listed the interlocutors as:The Greek government has announced that Tsipras will be holding talks with a number of leaders from the region - many heroes of the radical leftist. In order of appearance, the Greek government has listed the interlocutors as:
Tellingly, the Greek government made the announcement hours after EU commission president Jean Claude Juncker, still clearly incensed over Tsipras’ denunciation of the proporsed reform package by lenders, let it be known that it would be “a waste of time” to meet the Greek leader.Tellingly, the Greek government made the announcement hours after EU commission president Jean Claude Juncker, still clearly incensed over Tsipras’ denunciation of the proporsed reform package by lenders, let it be known that it would be “a waste of time” to meet the Greek leader.
Juncker said he would be better off meeting Latin Americans. And he’s sticking to that stance today:Juncker said he would be better off meeting Latin Americans. And he’s sticking to that stance today:
EU Commission President Juncker not willing to meet Greek PM Tsipras today in Brussels. There is no basis for further talks, EU sources say.EU Commission President Juncker not willing to meet Greek PM Tsipras today in Brussels. There is no basis for further talks, EU sources say.
7.50am BST07:507.50am BST07:50
Greece and creditors still disagreeGreece and creditors still disagree
Bloomberg is reporting that “no progress” has been made between Greece’s negotiators and the creditors in recent days:Bloomberg is reporting that “no progress” has been made between Greece’s negotiators and the creditors in recent days:
#Greece, creditors said to disagree on targets, measures, BBG reports. Talks said to make no progress this week.#Greece, creditors said to disagree on targets, measures, BBG reports. Talks said to make no progress this week.
So, Greece’s latest offer of budget surplus targets (close, but still below the old bailout targets) is still unacceptable.So, Greece’s latest offer of budget surplus targets (close, but still below the old bailout targets) is still unacceptable.
That doesn’t bode well for Tsipras’s meeting with Merkel and Hollande this afternoon.That doesn’t bode well for Tsipras’s meeting with Merkel and Hollande this afternoon.
It may also dampen the mood at the European Central Bank, which will decide today whether to continue providing emergency liquidity assistance (ELA) to the Greek banking sector.It may also dampen the mood at the European Central Bank, which will decide today whether to continue providing emergency liquidity assistance (ELA) to the Greek banking sector.
So what should a rule-based institution do reviewing ELA today? *GREECE TALKS THIS WEEK SAID TO MAKE NO PROGRESS TO END IMPASSESo what should a rule-based institution do reviewing ELA today? *GREECE TALKS THIS WEEK SAID TO MAKE NO PROGRESS TO END IMPASSE
Updated at 7.51am BSTUpdated at 7.51am BST
7.46am BST07:467.46am BST07:46
The Agenda: Greek PM to meet Merkel and Hollande (probably)The Agenda: Greek PM to meet Merkel and Hollande (probably)
Good morning, and welcome to our rolling coverage of the Greek bailout crisis and other events across the world economy, the financial markets, and business.Good morning, and welcome to our rolling coverage of the Greek bailout crisis and other events across the world economy, the financial markets, and business.
Greece is running short of time, and allies.Greece is running short of time, and allies.
Prime minister Alexis Tsipras is heading back to Brussels today for another meeting with the leaders of Germany and France, in yet another attempt to broach a compromise and unlock bailout funds for his country.Prime minister Alexis Tsipras is heading back to Brussels today for another meeting with the leaders of Germany and France, in yet another attempt to broach a compromise and unlock bailout funds for his country.
But the meeting with Angela Merkel and Francois Hollande, on the sidelines of the EU summit with Latin American and Caribbean nations, is unlikely to deliver a breakthrough, as Athens and her creditors remain divided over the measures that Greece must take.But the meeting with Angela Merkel and Francois Hollande, on the sidelines of the EU summit with Latin American and Caribbean nations, is unlikely to deliver a breakthrough, as Athens and her creditors remain divided over the measures that Greece must take.
There’s even some doubt that the meeting will actually happen, after one official warned:There’s even some doubt that the meeting will actually happen, after one official warned:
“If there is no movement, there is no meeting,”“If there is no movement, there is no meeting,”
“Germany and France don’t see the point of a meeting for now.”“Germany and France don’t see the point of a meeting for now.”
As we covered on Tuesday’s liveblog, Greece’s latest three-page proposal has been slapped down privately by EU officials, for still not going far enough on budget targets, pension reforms, VAT rates....As we covered on Tuesday’s liveblog, Greece’s latest three-page proposal has been slapped down privately by EU officials, for still not going far enough on budget targets, pension reforms, VAT rates....
And the European Commission is also losing patience with Athens. An exasperated President Jean-Claude Juncker has told fellow commissioners that a new Tsipras meeting would be a “waste of time”.And the European Commission is also losing patience with Athens. An exasperated President Jean-Claude Juncker has told fellow commissioners that a new Tsipras meeting would be a “waste of time”.
Juncker told commission meeting Tsipras tmrw 'waste of time', wd be 'better off meeting Latin Americans' - sources https://t.co/h0aLd5GxA9Juncker told commission meeting Tsipras tmrw 'waste of time', wd be 'better off meeting Latin Americans' - sources https://t.co/h0aLd5GxA9
So, something of a mess, given Greece’s bailout expires in under three weeks.So, something of a mess, given Greece’s bailout expires in under three weeks.
Also coming up today....Also coming up today....
European stocks are expected to dip again today, extending the recent selloff. Here’s IG’s opening calls:European stocks are expected to dip again today, extending the recent selloff. Here’s IG’s opening calls:
UK supermarket chain Sainsbury’s is in focus, after reporting its sixth straight quarter of falling sales:UK supermarket chain Sainsbury’s is in focus, after reporting its sixth straight quarter of falling sales:
Sainsbury's like-for-like sales in first quarter down 2.1% (excl fuel), down 3.7% inc fuel, blames strong food deflation and competitionSainsbury's like-for-like sales in first quarter down 2.1% (excl fuel), down 3.7% inc fuel, blames strong food deflation and competition
And late tonight in London it’s the Mansion House speech, where the chancellor and the governor of the Bank of England address the great and good of the City.And late tonight in London it’s the Mansion House speech, where the chancellor and the governor of the Bank of England address the great and good of the City.
I’ll be tracking all the main events through the day....I’ll be tracking all the main events through the day....