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Greek crisis: Austria shows solidarity as default risks grow - live updates Greek crisis: Austria shows solidarity as default risks grow - live updates
(35 minutes later)
9.18am BST09:18
Freelance journalist Omaira Gill reports that the Greek people are feeling increasingly worried by the crisis:
Mood on the ground: public is spooked. #troika #greece #austerity #euro #eurocrisis #syriza
9.09am BST09:09
Over in Athens, demonstrators have occupied the offices of the European Commission in an anti-austerity protest.
Enikos has more details:
The demonstrators are members of the trade union affiliated to Syriza, called META.
They have raised a banner saying: “The people cannot be blackmailed – The country isn’t for sale”.
8.38am BST08:388.38am BST08:38
Europe should be able to handle the “contagion risk” if Greece were to default on its debts and crash out of the eurozone.Europe should be able to handle the “contagion risk” if Greece were to default on its debts and crash out of the eurozone.
That’s according to Moritz Kraemer, managing director of sovereign ratings at S&P.That’s according to Moritz Kraemer, managing director of sovereign ratings at S&P.
Speaking on Bloomberg TV this morning, Kraemer said that most investors don’t think that “Grexit” is a likely scenario. But, if they are wrong, Greece is relatively well insulated from the rest of the financial world:Speaking on Bloomberg TV this morning, Kraemer said that most investors don’t think that “Grexit” is a likely scenario. But, if they are wrong, Greece is relatively well insulated from the rest of the financial world:
If you really look at the contagion risks - the direct links through common creditors, it’s not really that important any more.If you really look at the contagion risks - the direct links through common creditors, it’s not really that important any more.
Europe also has “much more powerful firewalls” than in 2012 - including a new bailout facility (the ESM) and Mario Draghi’s new bond-buying vehicle (OMT).Europe also has “much more powerful firewalls” than in 2012 - including a new bailout facility (the ESM) and Mario Draghi’s new bond-buying vehicle (OMT).
There is really a much bigger, more powerful toolbox than last time.There is really a much bigger, more powerful toolbox than last time.
That’s all true....but it’s worth noting that eurozone government bond yields (or interest rates) have been rising in recent weeks. That suggests they are being seen as riskier....That’s all true....but it’s worth noting that eurozone government bond yields (or interest rates) have been rising in recent weeks. That suggests they are being seen as riskier....
S&P's Kraemer says Greek contagion manageable in default case b/c of fire walls and ECB QE. (BBG) pic.twitter.com/pAlhONjMhYS&P's Kraemer says Greek contagion manageable in default case b/c of fire walls and ECB QE. (BBG) pic.twitter.com/pAlhONjMhY
Kraemer also confirmed that Greece would not be in default if missed its €1.6bn repayment to the IMF on 30 June.Kraemer also confirmed that Greece would not be in default if missed its €1.6bn repayment to the IMF on 30 June.
8.19am BST08:198.19am BST08:19
Here’s a couple more key quotes from the Austrian chancellor this morning, ahead of his meeting with Alexis Tsipras at noon local time (10am BST):Here’s a couple more key quotes from the Austrian chancellor this morning, ahead of his meeting with Alexis Tsipras at noon local time (10am BST):
#Austria Chancellor Faymann: Institutions must help #Greece deal with poverty; #EU will show solidarity if Greece does homework#Austria Chancellor Faymann: Institutions must help #Greece deal with poverty; #EU will show solidarity if Greece does homework
#Austria Chancellor Faymann: Some proposals for #Greece were 'not Ok'; Greece must improve tax collection, rule of law#Austria Chancellor Faymann: Some proposals for #Greece were 'not Ok'; Greece must improve tax collection, rule of law
8.15am BST08:158.15am BST08:15
Europe’s stock markets are creeping higher this morning, as traders watch events in Greece nervously.Europe’s stock markets are creeping higher this morning, as traders watch events in Greece nervously.
The FTSE 100 has gained 20 points, or 0.3%, in the first few minutes of trading, having been driven to a four-month low earlier this week.The FTSE 100 has gained 20 points, or 0.3%, in the first few minutes of trading, having been driven to a four-month low earlier this week.
The German and Spanish markets are also up just 0.2%, while the euro is a little higher against the US dollar at $1.127.The German and Spanish markets are also up just 0.2%, while the euro is a little higher against the US dollar at $1.127.
So, no panic. But the Greek saga is still hitting sentiment in the City.So, no panic. But the Greek saga is still hitting sentiment in the City.
As Mike van Dulken of Accendo Markets puts it:As Mike van Dulken of Accendo Markets puts it:
The nation’s fate is perilously in the balance as failure by Greece and its Creditors to cede ground continues, and a mud-slinging blame game by all and sundry for the lack of progress gathers pace. The clock ticks ever closer to default.The nation’s fate is perilously in the balance as failure by Greece and its Creditors to cede ground continues, and a mud-slinging blame game by all and sundry for the lack of progress gathers pace. The clock ticks ever closer to default.
8.05am BST08:058.05am BST08:05
Austrian chancellor: I stand by the Greek peopleAustrian chancellor: I stand by the Greek people
The Austrian Chancellor has issued a strong declaration of solidarity with Greece, hours before meeting Greek prime minister Alexis Tsipras in Athens later today.The Austrian Chancellor has issued a strong declaration of solidarity with Greece, hours before meeting Greek prime minister Alexis Tsipras in Athens later today.
Werner Faymann told Austrian broadcaster ORF that Greece should be given more support, given the extent of the damage suffered by its people since the debt crisis began.Werner Faymann told Austrian broadcaster ORF that Greece should be given more support, given the extent of the damage suffered by its people since the debt crisis began.
Faymann criticised some of the measures which Greece’s lenders - the IMF, ECB and EC - are demanding, saying:Faymann criticised some of the measures which Greece’s lenders - the IMF, ECB and EC - are demanding, saying:
“I know there were a number of proposals, also from the institutions, that I also don’t find in order.”“I know there were a number of proposals, also from the institutions, that I also don’t find in order.”
“High joblessness, 30-40 percent (with) no health insurance and then raising VAT on medicines. People in this difficult situation cannot understand that.”“High joblessness, 30-40 percent (with) no health insurance and then raising VAT on medicines. People in this difficult situation cannot understand that.”
Relations between Greece and her creditors are increasingly fraught, as Athens resists pressure to cut its pensions bill by 1% of GDP, and to raise sales taxes.Relations between Greece and her creditors are increasingly fraught, as Athens resists pressure to cut its pensions bill by 1% of GDP, and to raise sales taxes.
Last night, EC president Jean-Claude Juncker accused the Greek government of misleading the public over exactly what is being demanded.Last night, EC president Jean-Claude Juncker accused the Greek government of misleading the public over exactly what is being demanded.
Faymann’s intervention, and his visit to Greece today, are a last-ditch attempt to end the standoff with international creditors before eurozone finance ministers meet tomorrow.Faymann’s intervention, and his visit to Greece today, are a last-ditch attempt to end the standoff with international creditors before eurozone finance ministers meet tomorrow.
He declared:He declared:
“I stand on the side of the Greek people who in this difficult position are being proposed more things detrimental to society.”“I stand on the side of the Greek people who in this difficult position are being proposed more things detrimental to society.”
Faymann did also emphasise that Greece must meet its commitments under its current bailout plan, citing the need to fight fraud and a fair taxation system where everyone pays their fair share.Faymann did also emphasise that Greece must meet its commitments under its current bailout plan, citing the need to fight fraud and a fair taxation system where everyone pays their fair share.
But the priority is to “avoid a catastrophe”.But the priority is to “avoid a catastrophe”.
And asked whether Greece’s leaders can deliver a compromise in time, he said:And asked whether Greece’s leaders can deliver a compromise in time, he said:
“I assume that someone who is elected lives up to his responsibility.”“I assume that someone who is elected lives up to his responsibility.”
(thanks to Reuters for the quotes)(thanks to Reuters for the quotes)
Updated at 8.07am BSTUpdated at 8.07am BST
7.54am BST07:547.54am BST07:54
Introduction: Will ECB continue supporting Greek banks?Introduction: Will ECB continue supporting Greek banks?
Good morning, and welcome to our rolling coverage of the Greek bailout crisis.Good morning, and welcome to our rolling coverage of the Greek bailout crisis.
Athens now has just 13 days to reach a deal with its creditors before its bailout programme expires, and a matter of hours until finance ministers meet to discuss the situation in Luxembourg on Thursday.Athens now has just 13 days to reach a deal with its creditors before its bailout programme expires, and a matter of hours until finance ministers meet to discuss the situation in Luxembourg on Thursday.
The prospects of a deal to end the deadlock that is spreading worry through the eurozone and beyond do not look great.The prospects of a deal to end the deadlock that is spreading worry through the eurozone and beyond do not look great.
With both sides deadlocked, Austrian chancellor Werner Faymann is heading to Athens this morning for talks with prime minister Alexis Tsipras at noon local time, followed by statements to the press.With both sides deadlocked, Austrian chancellor Werner Faymann is heading to Athens this morning for talks with prime minister Alexis Tsipras at noon local time, followed by statements to the press.
Faymann will be pushing Tsipras to reach a deal, to head off the growing risks that Greece fails to repay €1.6bn to the IMF on 30 June.Faymann will be pushing Tsipras to reach a deal, to head off the growing risks that Greece fails to repay €1.6bn to the IMF on 30 June.
That danger prompted US Treasury secretary Jack Lew to phone Tsipras last night and push for a “pragmatic compromise”, just hours after the Greek PM accused the IMF of “criminal responsibility” for the crisis.That danger prompted US Treasury secretary Jack Lew to phone Tsipras last night and push for a “pragmatic compromise”, just hours after the Greek PM accused the IMF of “criminal responsibility” for the crisis.
Guardian front page, Wednesday 17 June 2015: Greece accuses 'criminal' creditors as default nears pic.twitter.com/kvxJC9VrCUGuardian front page, Wednesday 17 June 2015: Greece accuses 'criminal' creditors as default nears pic.twitter.com/kvxJC9VrCU
The unfolding crisis piles more pressure on the European Central Bank, which must decide today whether to keep providing emergency liquidity to the Greek banking sector.The unfolding crisis piles more pressure on the European Central Bank, which must decide today whether to keep providing emergency liquidity to the Greek banking sector.
The ECB has already stumped up around €82bn of support, to help banks keep afloat despite the steady loss of deposits as alarmed savers withdraw their funds.The ECB has already stumped up around €82bn of support, to help banks keep afloat despite the steady loss of deposits as alarmed savers withdraw their funds.
The ECB is unlikely to pull the plug on ELA today; such a move would be far too political for the central bank at this stage in the crisis. It could agree to raise it by a few billion euros -- a big increase would suggest that the outflow of deposits has accelerated.The ECB is unlikely to pull the plug on ELA today; such a move would be far too political for the central bank at this stage in the crisis. It could agree to raise it by a few billion euros -- a big increase would suggest that the outflow of deposits has accelerated.
We’ll be watching out for comments from Greek finance minister Yanis Varoufakis, who is meeting the Secretary-General of the OECD, Angel Gurria, in Paris this afternoon.We’ll be watching out for comments from Greek finance minister Yanis Varoufakis, who is meeting the Secretary-General of the OECD, Angel Gurria, in Paris this afternoon.
Varoufakis to meet OECD's Gurria in Paris - http://t.co/H0TRU0es3q pic.twitter.com/wOk4SsZo0MVaroufakis to meet OECD's Gurria in Paris - http://t.co/H0TRU0es3q pic.twitter.com/wOk4SsZo0M
And two of most powerful figures in world finance, IMF chief Christine Lagarde and Federal Reserve chair Janet Yellen, will both be speaking tonight; might they say something about the Greek crisis?And two of most powerful figures in world finance, IMF chief Christine Lagarde and Federal Reserve chair Janet Yellen, will both be speaking tonight; might they say something about the Greek crisis?
Morning Note: 1. ECB ELA decision. 2. Lagarde speaks 7:30 UK time. 3. Yellen speaks 7:30 UK time = bad scheduling pic.twitter.com/7wWexgtrvpMorning Note: 1. ECB ELA decision. 2. Lagarde speaks 7:30 UK time. 3. Yellen speaks 7:30 UK time = bad scheduling pic.twitter.com/7wWexgtrvp
I’ll be tracking all the main events through the day....I’ll be tracking all the main events through the day....