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Pressure intensifies on Greece to make more concessions - live updates Pressure intensifies on Greece to make more concessions - live updates
(35 minutes later)
1.12pm BST13:12
Looks like this Europe-LatAm summit in Brussels is turning into another #Greece meeting behind the scenes. At least Argentina is cheering.
1.05pm BST13:05
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/3w4TQVUoKc
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?
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 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....