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Greek crisis: eurozone leaders hold emergency summit - as it happened
Greek crisis: eurozone leaders hold emergency summit - as it happened
(6 days later)
11.34pm BST
11.34pm BST
23:34
23:34
#Greek PM Alexis Tsipras may find EU pres #JCJuncker's friendly cuff just that. #Syriza MPs already saying measures will never pass
#Greek PM Alexis Tsipras may find EU pres #JCJuncker's friendly cuff just that. #Syriza MPs already saying measures will never pass
11.33pm BST
11.33pm BST
23:33
23:33
Just one more point.... Back in Athens the spectre of dissent possibly disrupting any agreement has already begun.
Just one more point.... Back in Athens the spectre of dissent possibly disrupting any agreement has already begun.
On leading Syriza party MP predicting that the Greek government’s proposals will never get through parliament, reports Helena Smith
On leading Syriza party MP predicting that the Greek government’s proposals will never get through parliament, reports Helena Smith
Leading Syriza party cadre Alexis Mitropoulos, who is also vice president of the 300-seat House, has spoken out against the government’s proposed reforms telling STAR TV this evening:
Leading Syriza party cadre Alexis Mitropoulos, who is also vice president of the 300-seat House, has spoken out against the government’s proposed reforms telling STAR TV this evening:
“My personal view is that these measures cannot be voted, they are extreme and anti-social. I believe that in the end, this package which you have at hand, cannot come to the Greek parliament.”
“My personal view is that these measures cannot be voted, they are extreme and anti-social. I believe that in the end, this package which you have at hand, cannot come to the Greek parliament.”
We’ll be watching for more political reaction in the morning.....(or later in the morning, if you’re reading in most of Europe)
We’ll be watching for more political reaction in the morning.....(or later in the morning, if you’re reading in most of Europe)
11.31pm BST
11.31pm BST
23:31
23:31
Add that’s probably all for tonight - I’ll be back tomorrow morning for full coverage of another day of Greek drama. Goodnight, and thanks for all those comments. GW
Add that’s probably all for tonight - I’ll be back tomorrow morning for full coverage of another day of Greek drama. Goodnight, and thanks for all those comments. GW
11.27pm BST
11.27pm BST
23:27
23:27
Tsipras also told the press pack that Greece’s proposals have been accepted as the basis of a possible deal by its creditors (as Francois Hollande also said tonight).
Tsipras also told the press pack that Greece’s proposals have been accepted as the basis of a possible deal by its creditors (as Francois Hollande also said tonight).
And he’s echoed his own words when he arrived in Brussels 13 hour ago to be playfully cuffed by Juncker: -- Greece is seeking a “comprehensive” and sustainable solution that will be accompanied by a growth package.
And he’s echoed his own words when he arrived in Brussels 13 hour ago to be playfully cuffed by Juncker: -- Greece is seeking a “comprehensive” and sustainable solution that will be accompanied by a growth package.
11.24pm BST
11.24pm BST
23:24
23:24
Tsipras: The ball isn't in my court
Tsipras: The ball isn't in my court
Alexis Tsipras is explaining to reporters that his government is seeking a deal to address Greece’s mid-term funding issues,
Alexis Tsipras is explaining to reporters that his government is seeking a deal to address Greece’s mid-term funding issues,
(even though Juncker and Merkel both said tonight that debt relief isn’t being discussed right now).
(even though Juncker and Merkel both said tonight that debt relief isn’t being discussed right now).
He has also borrowed a pet phrase from fellow eurozone leaders -- the ball is in their court, not his :)
He has also borrowed a pet phrase from fellow eurozone leaders -- the ball is in their court, not his :)
The ball is now in the court of the European leadership said @atsipras. #Greece
The ball is now in the court of the European leadership said @atsipras. #Greece
11.16pm BST
11.16pm BST
23:16
23:16
The Greek delegation are listening to their leader too (there’s Yanis Varoufakis in the middle of the photo)
The Greek delegation are listening to their leader too (there’s Yanis Varoufakis in the middle of the photo)
Όλη η ελληνική ομάδα ακούγωντας την δήλωση του @atsipras pic.twitter.com/QSbbptBxPU
Όλη η ελληνική ομάδα ακούγωντας την δήλωση του @atsipras pic.twitter.com/QSbbptBxPU
11.14pm BST
11.14pm BST
23:14
23:14
Aha: there’s Alexis Tsipras, briefing the press right now.
Aha: there’s Alexis Tsipras, briefing the press right now.
@tsipras_eu sortant discretement de #Euco pic.twitter.com/NTY9zU3pGu
@tsipras_eu sortant discretement de #Euco pic.twitter.com/NTY9zU3pGu
11.08pm BST
11.08pm BST
23:08
23:08
As the clock strikes midnight in Brussels, and 1am in Athens, thoughts are turning to bed.
As the clock strikes midnight in Brussels, and 1am in Athens, thoughts are turning to bed.
But we’re not done yet.....we’ve still to hear from Alexis Tsipras.
But we’re not done yet.....we’ve still to hear from Alexis Tsipras.
#Greece PM Tsipras is briefing his team, transmitting a positive climate. Soon will give presser. /via @NChatzinikolaou #enikos
#Greece PM Tsipras is briefing his team, transmitting a positive climate. Soon will give presser. /via @NChatzinikolaou #enikos
11.02pm BST
11.02pm BST
23:02
23:02
Meanwhile in Athens....
Meanwhile in Athens....
10.49pm BST
10.49pm BST
22:49
22:49
EU officials are briefing that the two sides are really quite close now.....
EU officials are briefing that the two sides are really quite close now.....
Athens has fulfilled 90 percent of demands, rest not difficult. Hotel-restaurant VAT at 23% is price for deal, EU official tells @CSpillmann
Athens has fulfilled 90 percent of demands, rest not difficult. Hotel-restaurant VAT at 23% is price for deal, EU official tells @CSpillmann
10.48pm BST
10.48pm BST
22:48
22:48
Merkel: Third bailout wasn't discussed
Merkel: Third bailout wasn't discussed
Unfortunately, Angela Merkel’s post-summit briefing clashed with the Tusk-Juncker one.
Unfortunately, Angela Merkel’s post-summit briefing clashed with the Tusk-Juncker one.
Fortunately, the press pack scattered across the summit, and report that the German chancellor said there wasn’t any discussion of debt relief or a third bailout for Greece.
Fortunately, the press pack scattered across the summit, and report that the German chancellor said there wasn’t any discussion of debt relief or a third bailout for Greece.
We didn’t speak about a third program, just the completion of the second program, says Merkel regarding Greece Euro Summit.
We didn’t speak about a third program, just the completion of the second program, says Merkel regarding Greece Euro Summit.
Reuters has snapped the other key points:
Reuters has snapped the other key points:
And then she departed, pointing out that there’s a lot of work to do....
And then she departed, pointing out that there’s a lot of work to do....
10.36pm BST
10.36pm BST
22:36
22:36
Across the summit, Francois Hollande has given Greece some support.
Across the summit, Francois Hollande has given Greece some support.
The French President told reporters that “everything must be done for Greece to stay in the euro”, and that their proposal was “received positively” by its creditors.
The French President told reporters that “everything must be done for Greece to stay in the euro”, and that their proposal was “received positively” by its creditors.
We have the basis (or possibly the bases?) for a deal, he adds.
We have the basis (or possibly the bases?) for a deal, he adds.
10.29pm BST
10.29pm BST
22:29
22:29
Juncker: We'll get a deal, because we need a deal
Juncker: We'll get a deal, because we need a deal
How can Juncker possibly be confident that a solution will be reached this week, given the eurogroup need to assess these measures and then the Greece parliament have to approve them?
How can Juncker possibly be confident that a solution will be reached this week, given the eurogroup need to assess these measures and then the Greece parliament have to approve them?
I’m convinced that we will come to a final agreement in the course of this week, for the simple reason that we have to find one, says Juncker.
I’m convinced that we will come to a final agreement in the course of this week, for the simple reason that we have to find one, says Juncker.
As they say on football fields.... we cannot play prolongations.
As they say on football fields.... we cannot play prolongations.
Juncker "We cannot play.. as they say on football fields.. we cannot play prolongations" Luxembourgish football sounds weird..
Juncker "We cannot play.. as they say on football fields.. we cannot play prolongations" Luxembourgish football sounds weird..
A penalty shoot-out might be easier (good luck against the Germans)
A penalty shoot-out might be easier (good luck against the Germans)
10.25pm BST
10.25pm BST
22:25
22:25
What discussions did eurozone leaders have about capital controls?
What discussions did eurozone leaders have about capital controls?
Capital controls were not mentioned tonight, Juncker replies.
Capital controls were not mentioned tonight, Juncker replies.
(reminder, we understand that eurozone finance ministers discussed the issue during their meeting earlier today)
(reminder, we understand that eurozone finance ministers discussed the issue during their meeting earlier today)
10.24pm BST
10.24pm BST
22:24
22:24
Are Greece’s creditors worried that the latest proposals will have a recessionary impact?
Are Greece’s creditors worried that the latest proposals will have a recessionary impact?
That is an issue we can look at now, Juncker replies.
That is an issue we can look at now, Juncker replies.
10.21pm BST
10.21pm BST
22:21
22:21
Onto questions.... was there any discussion on debt relief for Greece?
Onto questions.... was there any discussion on debt relief for Greece?
This is not the time to discuss that issue, Juncker replies
This is not the time to discuss that issue, Juncker replies
10.20pm BST
10.20pm BST
22:20
22:20
10.20pm BST
10.20pm BST
22:20
22:20
Juncker then says a few words -- the Eurogroup will meet again on Wednesday, he says, and he’s confident that they will produce results for Thursday’s summit.
Juncker then says a few words -- the Eurogroup will meet again on Wednesday, he says, and he’s confident that they will produce results for Thursday’s summit.
And thenhe states that “We will finalise the process this week”.
And thenhe states that “We will finalise the process this week”.
Tusk: Greek proposals will be assessed over coming hours. Juncker: we will get a deal this week. Categorical.
Tusk: Greek proposals will be assessed over coming hours. Juncker: we will get a deal this week. Categorical.
10.17pm BST
10.17pm BST
22:17
22:17
Tusk: Greek proposals are a positive step.
Tusk: Greek proposals are a positive step.
European Council president Donald Tusk speaks first, telling reporters that he called tonight’s meeting to avoid a chaotic, uncontrollable ‘Graccident’.
European Council president Donald Tusk speaks first, telling reporters that he called tonight’s meeting to avoid a chaotic, uncontrollable ‘Graccident’.
I called today’s summit because I wanted to inject new dynamism in negotiations that have stalled for too long....Today’s Greek proposals show we have taken that step.
I called today’s summit because I wanted to inject new dynamism in negotiations that have stalled for too long....Today’s Greek proposals show we have taken that step.
And I wanted all leaders to be on the same page.
And I wanted all leaders to be on the same page.
Alexis Tsipras has assured us that the Greek government is fully committed to reaching a deal.
Alexis Tsipras has assured us that the Greek government is fully committed to reaching a deal.
Today’s proposals are a positive step....they will be assessed in the coming hours.
Today’s proposals are a positive step....they will be assessed in the coming hours.
10.15pm BST
10.15pm BST
22:15
22:15
Donald Tuck and Jean-Claude Juncker are arriving in the press room NOW
Donald Tuck and Jean-Claude Juncker are arriving in the press room NOW
10.14pm BST
10.14pm BST
22:14
22:14
Christine Lagarde has apparently left the summit too, telling reporters that “we have a huge amount of work to do on Greece” in the next 48 hours.
Christine Lagarde has apparently left the summit too, telling reporters that “we have a huge amount of work to do on Greece” in the next 48 hours.
10.09pm BST
10.09pm BST
22:09
22:09
Ah....Angela Merkel is also due to give a press conference, which should be streamed online here.
Ah....Angela Merkel is also due to give a press conference, which should be streamed online here.
Updated
Updated
at 10.09pm BST
at 10.09pm BST
10.07pm BST
10.07pm BST
22:07
22:07
Press briefing shortly
Press briefing shortly
Donald Tusk and Jean-Claude Juncker are about to hold a press conference on today’s summit, which is being streamed on EbS.
Donald Tusk and Jean-Claude Juncker are about to hold a press conference on today’s summit, which is being streamed on EbS.
I’ll cover the key points, while also trying to watch for other briefings as leaders depart Brussels (what can possibly go wrong?)
I’ll cover the key points, while also trying to watch for other briefings as leaders depart Brussels (what can possibly go wrong?)
10.07pm BST
22:07
Italy’s Matteo Renzi has made a quick exit from the summit,....
Only short declarations after the #EuroSummit. Renzi: "work in progress". Dijsselbloem: "hard work". #Greece
10.06pm BST
22:06
Dalia Grybauskaitė , president of Lithuania, has left the summit - and warned that the next 48 hours are “absolutely crucial”.
Today we were mainly persuading the Greek government to use our experiences and perform what is necessary, she says.
So you’re not impressed by the Greek proposals?
Not yet.
That’s not as provocative as her quotes arriving at the summit:
The Greek government still wants to party but the bills have to be paid by somebody else #EUCO
9.49pm BST
21:49
Phew
It's over #eurosummit
9.47pm BST
21:47
9.47pm BST
21:47
Like an smouldering fire, the eurozone summit appears to have sprung back into life again. At least, there’s no sign of anyone leaving the event (which must be irksome for those haven’t enjoyed a spot of roast beef and parfait tonight)
9.43pm BST
21:43
The early reaction to the Greek government’s latest set of proposals from the eurocrisis crowd isn’t terribly positive:
Greek plans to tighten fiscal policy next 2 yrs. Not gov'nce and admin reforms but classic austerity.The last 3 mo were abt what exactly?
Next question is: will SYRIZA's left wing be alright with Greek gov't moving so close to the institutions' position on pensions? #Greece
Sadly but predictably new Greek proposals seem to be all taxes, falling hardest on young and private sector. I'm told will hit GDP by 1 ppt.
Am told @yanisvaroufakis told eurogroup the Greek proposals wld be v difficult to get thru parliament. Having read them all, I see his point
'Additional parametric budgetary measures' - from Greece to their eurozone overlords pic.twitter.com/G0CGsRZs4a
Let’s not pretend that Tsipras and his colleagues want to make these sort of cuts and tax hikes, though; they just appear to be losing the battle over these issues.
9.29pm BST
21:29
I’m hoping that eurozone leaders will speak to the media, now that the emergency summit has finished. If so, it should be streamed live on EbS (but no promises).
Surely Alexis Tsipras will say something interesting?
Sounds like no press conference from @atsipras. Aides say just a statement on the way out.
9.27pm BST
21:27
Greece’s finance minister hasn’t lost his knack at social media, after being challenged on Twitter tonight by Guy Verhofstadt, the senior Liberal MEP and former Belgian PM.
I hope tonight @atsipras @yanisvaroufakis also think about the people who want a deal & European future for #Greece pic.twitter.com/A4QbNLRrqC
@GuyVerhofstadt Rest assured: We are working tirelessly to produce a healing agreement - one that resolves the crisis & keeps Europe intact.
9.21pm BST
21:21
As flagged up earlier, Greece is also now proposing to charge a higher VAT rate on many products; it’s not going to be popular.....
Greek VAT proposals don't look easy to sell to Syriza/voters pic.twitter.com/DfwluWzCgK
9.19pm BST
21:19
The Greek government has released one of its famous non-papers outlining in detail the proposed reforms it has made to creditors today, reports Helena.
Right off the bat (as point no 1) the leftist-led administration says:
“The government’s proposal is NOT part of its programme. It is the result of hard and persistent negotiations in order to get to an agreement that wouldn’t harm workers’ rights, further dissolve the social fabric and which would allow growth.
[It is] A proposal that does not doom the country to harsh austerity and which encompasses a viable solution for the Greek economy, without burdening those on lower and mid-sized incomes.”
Prolonging the uncertainty by extending the country’s current bailout accord was not on the cards, the statement said.
Whatever happened, creditors had to address the issue of Greece’s debt and Athens’ need for financing, in the mid-term, to “end the vicious circle of uncertainty so that the country is not forced to constantly take new loans in order to pay previous loans.”
9.12pm BST
21:12
Word from Brussels: the Greek summit appears to be wrapping up.....
#EuroSummit about to end.EU sources
9.05pm BST
21:05
The bizarre spectacle of a phantom Greek summit.
Ian Traynor
The eurozone emergency summit is continuing tonight, so check out Ian Traynor’s report on a crazy old day in the ongoing Greek crisis:
Greece’s day of destiny turns to farce with phantom eurozone summit
Greece’s date with destiny started with its upstart prime minister, Alexis Tsipras, being slapped on the face. It is the customary gesture of endearment from Jean-Claude Juncker, president of the European commission. It means the two men are friends, despite Juncker saying at the weekend he no longer trusted Tsipras.
And the day that was supposed to arrest Greece’s collapse into bankruptcy, and prevent the euro’s diminution, ended more than 12 hours later on Monday evening with the bizarre spectacle of a phantom summit.
Monday’s hotly awaited emergency gathering of eurozone leaders, called last Thursday evening to fix the Greek crisis or at least to attach sticking plasters to Greece’s bleeding wounds, had nothing to decide and no real agenda to discuss.
For that to happen, the finance ministers of the single currency bloc who gathered earlier in the afternoon had to assess the chances of a deal and make their recommendations to the leaders. They could not do that, said Jeroen Dijsselbloem, the Dutch finance minister who chaired the session, because they did not have enough time to study what Athens was proposing. Their minions would have to negotiate hard and come back later in the week.
So why did the Eurogroup finance ministers come to Brussels? They had to, Dijsselbloem said, because they were obliged to prepare the emergency summit. They did not manage that. So what was the point of the summit?
“The leaders are always free to have a different opinion,” the Dutchman smiled.
The leaders flew in from Paris and Berlin, Madrid and Vienna, Dublin and Bratislava in any case, perhaps to teach Tsipras a lesson.
“There is no question of cancelling the summit,” said an EU official.
“The idea is to remove from Tsipras the illusion he can get a better deal at the summit, or that a decision can be taken at the summit level. The point is to have Tsipras learn the position of the other leaders. No negotiation, no technical discussion. Make sure everybody understands where the others are.”....
Here’s the full piece:
#Greece: The bizarre spectacle of a phantom summit. V good by @traynorbrussels http://t.co/NNVXaFlTcb
9.01pm BST
21:01
Angelique has also written about how the Greek population has become immune to eurozone panic fever, after years of austerity and depression:
As the “last-chance” talks rolled on towards another “last-ditch” summit possibly at the end of this week, weary Greeks have deadline fatigue.
“Unfortunately, we’ve become hardened and accustomed to all this, including the never-ending talks,” said Christos Griogoriades, a physics and IT teacher in Greece’s northern second city of Thessaloniki.
Panic about so-called “knife-edge”, “life-or-death” negotiations has become so commonplace that it is almost meaningless to a population whose major concerns are still making ends meet and scrimping for enough to eat.....
Related: Crisis is the new normal for weary Greeks
8.56pm BST
20:56
Acc to Greek gov sources @atsipras met #Draghi for 30 minutes. #ECB chief told him the banks are safe as far as #Greece is in a programme.
8.44pm BST
20:44
A Greek government official has told Reuters tonight that Mario Draghi assured Alexis Tsipras that he’ll keep supporting the banking sector, as long as Greece is in a bailout programme.
*ECB TO AID GREEK BANKS AS LONG AS BAILOUT ONGOING: GREEK OFFCL
The current bailout expires on June 30, of course, when Greece also owes €1.6bn to the IMF.
8.35pm BST
20:35
Helena Smith
Over in Athens Helena Smith says tonight’s rally outside the Greek parliament is further proof of the growing divide now emerging between pro-European and anti-European camps in Greece. Demonstrators spoke of a “civil war” atmosphere between the two camps.
“Before, the divide was between the pro-memorandum and anti-memorandum camps,” said Lefteris Pappas, a business consultant standing in Syntagma square.
“Now it is between those who believe our future is in Europe and those who want to split from the EU and its a divide that is becoming ever more extreme. There is a lot of abuse in the social media, on Twitter and Facebook, [between the two]. They’ve even harked back to the second world war and called us German collaborators because we believe in reform, we agree with a lot of what the creditors are telling us to do.”
Yannis Sviroyeras, a retired entrepreneur, said he believed the growing chasm was being deliberately cultivated by the government.
“They are Bolsheviks, they’re Stalinists, they’ve Trotskyists, they’ve got mad ideas about us aligning with Russia. What I worry about is violence. Imagine if the two of us [both camps] want to demonstrate in Syntagma Square - and that day may come soon. It would be difficult not to come to blows.”
Updated
at 8.42pm BST
8.33pm BST
20:33
The letter which Alexis Tsipras sent to Jean-Claude Juncker to explain Greece’s new proposals has also leaked, and shows Athens is adamant that it is meeting its creditors demands:
El documento con la firma de Tsipras: pic.twitter.com/3T6xUbsTGY
8.32pm BST
20:32
Sky’s Ed Conway has also got hold of the latest Greek proposals:
The full scorecard of measures from the Greek reform/bailout proposals today. VAT reform and pensions raise the most pic.twitter.com/FaWo87dYbe
7.59pm BST
19:59
Pro-EU demo in Thessaloniki
Angelique Chrisafis
In the Greek city of Thessaloniki, over two hundred “We are Staying in Europe” demonstrators gathered at the city’s White Tower tonight amid a festive atmosphere as pop music blared from loud speakers and some women wrapped themselves in Europe flags.
Apostolis Malamakis, an engineering researcher, told the Guardian:
“It’s not about pressure, I’m just here to express my pro-European feelings.”
He said he’d been disappointed in an array of political parties in Greece over the past five years. He felt a deal would be reached in Brussels and that things in Greece would become more difficult in the immediate future.
Stavros Stavrides, 41, an orthopedic surgeon at a private clinic, said:
“This is the first time I’ve taken part in a rally since we won the basketball in 1987. This is about giving the government an argument for staying in the euro.”
Makis Karagiannis, a maths teacher, said he was there “not for purely economic reasons” but to “show what Europe symbolises to us,” adding:
“I regard myself as a person of the enlightenment tradition of Europe and that is very important to me.”
Updated
at 8.00pm BST
7.58pm BST
19:58
No white smoke from Brussels yet.....
Almost 2 hours gone on the summit meeting, is this the longest period of time they have spent in one room?? #Greeece #Grexit
7.53pm BST
19:53
Just in: photos showing Angela Merkel and Francois Hollande having an intense chat in the corridors of Brussels, after a bilateral meeting this afternoon:
Updated
at 7.53pm BST
7.40pm BST
19:40
Lisa O'Carroll
The Irish government, which has maintained a hard line on Syriza by insisting Greece must stick to the conditions of its bailout programme, seems to have been persuaded that a deal is viable. Enda Kenny, the Taoiseach, told RTE and Channel 4 News:
“What’s on the table now is a basis for discussion. There is movement in respect of pensions, there is movement in respect of VAT, there is movement on primary surplus.
“The important thing is that there be a conclusion to this set of negotiations this week.”
The Irish had feared that a Syrizia victory would provide an advantage to domestic anti-austerity opponents, mainly Sinn Fein, ahead of next year’s general election.
7.31pm BST
19:31
Scuffles in #Athens and riot police are out. Fairly calm here though. #Greece pic.twitter.com/fSiK2GmTp0
7.30pm BST
19:30
The FT reckons that another €1.6bn-worth of deposits left the Greek banking system today.
7.16pm BST
19:16
Helena Smith
For the second time in a few days, protesters have poured into Athens’ Syntagma Square to exhort the Tsipras government not to endanger Greece’s place in the eurozone, and by extension the EU, writes Helena Smith
Unfurling a giant blue and white flag over the retaining wall of the Greek parliament, they chanted “Europe, Europe, we are staying in Europe.”
“Tsipras has to know that he got into power with 36% of the vote, he is not there with the support of all Greeks and he has absolutely no right whatsoever to take us out of Europe,” said Marietta Kontou, a shop owner, insisting it was outrageous the leftist-led government had opened Greece’s membership of the euro to question at all.
“Europe is where this country belongs. It is very important that we belong to the West.”
Standing next to her waving the star-bedecked European flag her friend Angeliki, who studied economics in Britain, said she had “lost sleep” at the thought that Athens might not reach a cash-for-reform deal with creditors and be forced out out of the currency bloc.
“To think that we could end up like Bulgaria or Rumania, an impoverished country in south east Europe, is almost too much to bear. Being an EU member is not only about money, it’s about human rights, a view of the world that is far too precious to lose.”
Several older Greeks who had come in from the suburbs to attend the rally, said membership of the euro had to be preserved at any price. “It is not negotiable, absolutely not negotiable,” said Lefteris Rigas, a retired businessman.
“Those who advocate the return of the drachma are ignorant, ignorant of the chaos that would surely follow. A return of the drachma would hurt the most vulnerable in our society most.”
Highlighting the growing divide between those who support the country’s continued membership of the euro and those who do not, riot police were rushed to the parliament building after anti-establishment, anti-EU protestors attempted to clash with those who had gathered in Syntagma for the rally.
Updated
at 7.26pm BST
7.11pm BST
19:11
The pro-EU demonstrators have now filled the area in front of the Greek parliament tonight:
7.06pm BST
19:06
No austerity rations for the eurozone leaders tonight, it appears:
European leaders are eating: Brill with garden herbs - Roast fillet of beef with artichokes and grated potato cake - Lemon parfait. Coffee.
6.56pm BST
18:56
Photos: Tonight’s emergency summit begins
Alexis Tsipras is chaperoned by the leaders of France and Spain tonight.
Francois Hollande was one of the most optimistic leaders heading into tonight’s summit, so counts as a Greek ally.
Mariano Rajoy, though, will be reluctant to allow Greece an easy ride ahead of his own general elections this autumn, with Podemos on the rise.
Greece’s creditors are lined up in formation, with Germany’s Angela Merkel alongside them:
Other eurozone leaders are corralled on the wings.
6.48pm BST
18:48
Wolf Piccoli of Teneo Intelligence says the latest Greek proposals are designed to tackle political hurdles, rather than steer the economy back to growth.
Pensioners almost spared, private business bearing the brunt of the govt's new proposal. Political rather econ priorities #Greece
6.45pm BST
18:45
Oh Mr Tusk, with our second emergency eurozone meeting of the day you really are spoiling us.
The #EuroSummit on #Greece has just started. http://t.co/8bgqsyHfUV pic.twitter.com/ARqKdIXaua
6.37pm BST
18:37
Greece's proposals leak out
Details of Greece’s new proposals are starting to emerge in Brussels:
Joost de Vries of Dutch newspaper Volkskrant has tweeted a page showing where the cuts and tax rises fall. And there’s a hefty increase in revenues from VAT over the next 18 months.
Greece has also accepted that pension must be reformed, and is planning a hike in pension contributions and an increase in health contributions from retirees. However, it appears that actual pension rates won’t be cut, allowing Athens to argue it has kept to its red line.
There’s also a one-off tax on company profits, for firms earning at least half a million euros.
Here is the Greek proposal ('final solution') for EU deal #Greece pic.twitter.com/P717JvaCip
The figures match what the FTs Peter Spiegel has been told tonight:
New measures offered by #Greece estimated by Athens to total €2.69bn in 2015 and €5.2bn in 2016, according to people who have seen proposal
Biggest change in #Greece pension proposal is an increase in contribution to main pensions of 3.9%. Estimated to raise €800m in 2016.
Although officials say new #Greece proposal vague on VAT reforms, energy is at new 13% rate and overall revenue increase est €1.36bn in 2016
6.21pm BST
18:21
Our Athens correspondent, Helene Smith, reports:
Huge turn out in Syntagma square by pro-euro #Greeks amid heightened tensions - & reported clashes - with youths wanting split w EU
6.14pm BST
18:14
Can’t say I’ve missed seeing riot police on the streets of Athens:
6.05pm BST
18:05
Jean-Claude Juncker was disappointingly tight-lipped as he arrived at tonight’s emergency summit.
The Commission president only said a few words as he marched in, including a brisk “Bon Soir”. But will it be a good evening?....
6.01pm BST
18:01
Juha Sipilä, Finland’s new prime minister, doesn’t share Hollande’s optimism.
Asked what he expects tonight, he replies “not much, not much”, before heading towards the Summit. Sipilä then gives a longer interview in Finnish, so we might get more details later....
Updated
at 6.01pm BST
5.56pm BST
17:56
The French president’s limo just rolled up in Brussels, and a quite optimistic-sounding Francois Hollande got out.
He told reporters that the new proposals tabled by Greece overnight are an improvement on previous ideas, although some things must still be resolved.
Tonight’s talks could open the way to a deal soon, he adds.
Hollande says new Greek proposals much stronger, although no formal decision tonight.
5.50pm BST
17:50
Angela Merkel has arrived at the EU summit, telling reporters that there is no basis for a decision on Greece tonight.
Tonight’s meeting can only be a consultation exercise, the German chancellor says.
5.47pm BST
17:47
Back in Athens, riot police are on the streets to prevent clashes between rival anti-austerity and pro-EU demonstrations.
Newsnight’s Jess Brammar is on the scene, and tweeting the latest:
This is a fairly small but noisy gathering so far pic.twitter.com/KLevUGXAeC
It's getting a bit heated in Syntagma Sq. Still quite small though pic.twitter.com/JYDZsNbN7l
Now these guys have turned up in syntagma square pic.twitter.com/EAWfbbmi1N
These police have a lot of kit pic.twitter.com/rUxq5Ff41q
5.37pm BST
17:37
Bit of confusion of Donald Tusk’s comments, so I’ve watched the tape again, and he’s definitely warning about the dangers of ‘Graccident’ -- ie, Greece stumbling into a default, or worse....
Tusk says we need to avoid 'uncontrollable chaotic Grexident' (he spells it Graccident but that's not the classic spelling)
5.29pm BST
17:29
Tusk: Leaders must take responsibility for avoiding chaotic Graccident
Donald Tusk has now arrived at the EU summit following his talks with the Greek delegation, and issued a clear warning that he wants serious progress tonight.
The European Council president said that the blame game must end:
This evening I want all cards on the table. That doesn’t mean I want to negotiate technical details, but it means I want to end this political gambling.
Tusk called tonight’s meeting four days ago, after talks between Greece and its creditors hit the wall. He’s more confident tonight, saying:
I can say that since I called this informal meeting, some promising things have happened, including today’s talks and meeting.
The latest Greek proposals are the first real proposals in many weeks, Tusk continues, although they obviously still need the assessment of the instutions and further work.
But the most important thing is that the leaders take full responsibility for the political process to avoid the worst case scenario, which means uncontrollable, chaotic Graccident.
But how much time does Greece have left?
Tusk nearly breaks into a smile, but replies:
We will see tonight....
Updated
at 5.40pm BST
5.16pm BST
17:16
Greece holds talks with Tusk
The Greek delegation has just held talks right now with European Council president Donald Tusk, who called tonight’s emergency summit:.
Finance minister Yanis Varoufakis (top right) does not look particularly happy....
Bilateral meeting with Greek Prime Minister @atsipras ahead of today's #EuroSummit. pic.twitter.com/kKhbHk37Mr
Συνάντηση αυτή την ώρα με τον Πρόεδρο του Ευρωπαϊκού Συμβουλίου κ. Toύσκ @eucopresident #Greece #EuroSummit #EUCO pic.twitter.com/56znMExICG
Updated
at 5.18pm BST
5.11pm BST
17:11
European investors have given a resounding vote of confidence that the Greek debt crisis is going to be resolved, if only temporarily, this week.
The German, French and Spanish stock markets have both closed around 3.8% higher – a really hefty rally.
That’s the biggest one-day percentage rise on the Dax since early August 2012, my colleague Nick Fletcher reports.
Those predictions that a deal is just days away are being taken seriously, so if relations fall apart tonight there could be wild swings tomorrow.....
4.59pm BST
16:59
Yup:
'We're not so much five minutes to midnight as thirty seconds to midnight,' says Luxembourg PM @Xavier_Bettel on Greece
4.55pm BST
16:55
There could be tensions in Athens tonight, with rival demonstrations due to take place in the coming hours.
Pro-government demonstrators have begun marching in the Greek capital:
You don't have to sit around for very long in Athens for a demo to go past at the moment, it seems pic.twitter.com/hGWXJ8wvXA
Ahead of pro Euro rally. The anti austerity lot are here. pic.twitter.com/C9zuQp507c
And we’re also expecting another march, in favour of reaching a compromise with creditors and preserving Greece’s EU membership, later.
4.55pm BST
16:55
Our Jennifer Rankin is poised outside tonight’s emergency summit meeting, to hear what leaders say as they arrive:
PM of Luxembourg:"lose-lose situation" if Greece leaves the ez, but stresses he has responsibility to his taxpayers.
4.51pm BST
16:51
The head of one of Germany’s major economic think tanks has argued that EU leaders should push Greece to implement capital controls tonight.
Professor Clemens Fuest, head of the ZEW, isn’t convinced that a deal is close, arguing:
“Greece are withdrawing their money from banks, and European Central Bank (ECB) aids are maintaining the bank’s liquidity. As a result, liability risks for tax payers in the euro area are increasing every day, while the bargaining power of the Greek government is growing.
“Alexis Tsipras has no plan for economic recovery in Greece. His only plan is to employ more government officials, to nationalize companies, and to make the citizens of other countries fund his policy. His government is failing to collect taxes at home, for example the taxes from illicit accounts in Switzerland.”
Updated
at 4.51pm BST
4.44pm BST
16:44
You can watch EU leaders arriving at tonight’s Emergency Summit here.
4.40pm BST
16:40
Reminder: Tonight’s emergency summit is due to start at 7pm Brussels time, or 6pm BST.
There will be other meetings first, though, with Alexis Tsipras due to meet Mario Draghi shortly....
4.38pm BST
16:38
Alexis Tsipras has just arrived for tonight’s summit meeting, with a smile for the cameras but no quotes for the assembled reporters.
Updated
at 4.39pm BST
4.33pm BST
16:33
The BBC are tweeting more details of their interview with Greek economy minister George Stathakis, who believes a breakthrough has been achieved.
Greece's economy minister spells out terms of new proposals to end deadlock on debt crisis http://t.co/qIxHI9diOH pic.twitter.com/194EiK9dH5
4.24pm BST
16:24
European leaders are starting to arrive for tonight’s emergency summit, starting with Latvia’s Laimdota Straujuma, and Mark Rutte of the Netherlands:
4.14pm BST
16:14
If you’re just tuning in, here’s my colleague Jennifer Rankin’s latest dispatch from Brussels on today’s developments:
Related: Eurozone finance chief says more time needed for Greek negotiations
And here’s a flavour:
Greece’s eurozone creditors have called for more time to study the latest plan from Athens aimed at unlocking Greece’s remaining bailout funds and staving off imminent bankruptcy.
A meeting of eurozone finance ministers broke up after little more than an hour of discussions, raising questions about the purpose of an emergency summit of EU leaders starting in a few hours.
Jeroen Dijsselbloem, the Dutch finance minister, who chairs the group of 19 eurozone countries, said that the European Union institutions needed time to look at the Greek proposals with the aim of reaching an agreement later this week.
But the Greek plan was “a basis to really restart the talks again and really get a result”, he said, although officials needed to assess whether “the economic reforms [proposed] are enough for the economy to take off again”.
Greece submitted concessions overnight responding to creditors’ key demands including raising VAT and making changes to the country’s pension system that would eventually raise the retirement age to 67..... (click here for more)
4.12pm BST
16:12
Here’s another shot of Greece’s creditors planning their strategy ahead of tonight’s emergency summit:
4.02pm BST
16:02
The FT’s Peter Spiegel has also heard that eurozone finance ministers discussed whether capital controls should be imposed in Greece (as flagged earlier)
He writes:
“There was a discussion about capital controls, but without conclusion,” said one of the officials.
3.51pm BST
15:51
Over in Brussels now, the heads of the IMF, ECB, Europan Commission and European Council are sitting down to plan for tonight’s emergency summit on Greece.
@eucopresident's w/ @Lagarde @ECB Draghi @JunckerEU @J_Dijsselbloem to prepare #EuroSummit on #Greece this evening pic.twitter.com/hh9NIL0P9e
3.46pm BST
15:46
The Eurogroup has now issued a brief statement, confirming what we learned earlier:
The Eurogroup broadly welcomed a new version of the reform plan submitted by the Greek authorities this morning, before the Eurogroup meeting, and considered it to be a positive step in the process.
The Eurogroup asked the institutions (the European Commission, the European Central Bank and the International Monetary Fund) to start analysing the new proposal and together with the Greek authorities work out a list of prior actions with a view to reaching a final agreement on the reform plan later this week.
The Eurogroup might hold another meeting this week.
Today's #Eurogroup welcomed "positive steps" of Greek authorities. View to final agreement later this week. #Greece pic.twitter.com/zRTcGSmBlt
3.41pm BST
15:41
The Athens stock market just closed for the night having surged by 9% today, as optimism ripples through the trading floor.
Traders are clinging onto hopes that a deal will be reached -- driving bank shares up by 20% today. Quite a vote of confidence that this crisis will end well....
The German and French markets are both up around 3.5% in late trading, as optimistic noises from Athens and Brussels spark a rally.
And in the City, the FTSE 100 index of blue-chip sharesis up now up 99 points or 1.5%.
3.22pm BST
15:22
Hello...... Belgium’s finance minister has revealed that some of his counterparts think capital controls should be imposed in Greece now.....
Belgian finmin breaks the first rule of Capital Controls Club pic.twitter.com/upT3zT0To1
3.20pm BST
15:20
Optimism is picking up again... European Commission president Jean-Claude Juncker has just declared that he’s aiming for a deal with Greece by the end of the week.
.@JunckerEU doorstep at the @EUCouncilPress "My aim is a deal by the end of the week. We are working day and night for this." #Greece
3.17pm BST
15:17
BBC will shortly show @Peston interview with Greek minister will say deal has been done that does not cross Tsipras red lines
3.15pm BST
15:15
Greek minister tells BBC: there's a breakthrough
Greece’s economy minister, Giorgos Stathakis, has told the BBC that he believes Athens’ new proposals have broken the deadlock.
And he also reckons that European leaders will reflect that in their communique tonight.
Robert Peston, the Beeb’s economics editor, has the story:
He said he expects eurozone government heads to issue a communique later today that will say there is now a basis for a formal agreement with Athens to complete the current bailout programme and release €7.2bn of vital funds.
Mr Stathakis conceded that technical work would need to be done in the coming days to formalise the agreement. But he was hopeful that Greece would be able to make its €1.5bn payment to the IMF on its due date of June 30 - and therefore avoid a devastating default.
He detailed Greece’s new money-raising proposals. These include:
Here’s the full story: Stathakis: Greece rescued
Exclusive: Greek econ minister Stathakis tells me government heads communique to say outline of Greek deal agreed, subject to technical work
Updated
at 3.16pm BST
3.07pm BST
15:07
A Greek official has told Reuters that Alexis Tsipras will hold a meeting with Mario Draghi, the ECB’s president, at 5pm BST (6pm Brussels time).
2.54pm BST
14:54
Anyone know why Christine Lagarde didn’t show at the press conference?
Was it a bad sign that @Lagarde was supposed to be at presser w/@J_Dijsselbloem but didn't show? #Greece
2.37pm BST
14:37
Snap verdict: Greece lives to fight another day
That is one of the shortest eurozone crisis press conferences I can remember. But not the most gloomy.
The key message is that the new proposals from Greece are “broad and comprehensive,” and a good basis to restart the negotiations that froze over a week ago. But they just arrived too late for a breakthrough today.
A deal isn’t coming tonight, but the door remains open on an agreement by Thursday, when EU leaders hold another summit.
However....that door could start to creak shut if Greece’s proposals aren’t up to scratch, or if negotiations stall again.
Overall, today's post-Eurogroup presser sounded far more positive than the one in Riga - to mention but one example. #Greece
Also true that institutions have only just started looking into details of new Greek proposals. Objections may arise at later stage. #Greece
In the short-term, though, the eurogroup’s optimism means it will be hard for the European Central Bank to pull the plug on the Greek banking sector.
If finance ministers think there is a good chance of a deal, the unelected central bankers of Frankfurt can’t overrule them.
"We consider it a step in a positive direction" says #Eurogroup chief of Greece offer.. Seems to support the ECB keeping Greek banks going
It’s also encouraging that Jeroen Dijsselbloem resisted giving Greece a hoofing over the mix-up with its proposals. He could have taken the opportunity to rebuke Yanus Varoufakis, having been criticised by the Greek finance minister in the past.
Instead, Dijsselbloem was quite conciliatory, saying it was “no big problem” to get two versions.
The big loser today could be fans of the BBC’s Question Time programme, who had been promised that Varoufakis would be on the panel this week. He’s probably double-booked now.....
Greece's Fin Min Varoufakis on @bbcquestiontime this Thursday, same day Eurogroup of fin mins now reconvenes. Wonder which he'll got to?
Updated
at 2.39pm BST
2.24pm BST
14:24
Yanis Varoufakis has apparently left the eurogroup without speaking to the media:
Biggest news from #Eurogroup's doorstep is that #Greece's FinMin left without making a comment
2.18pm BST
14:18
And with that, it’s over.
Updated
at 2.18pm BST
2.18pm BST
14:18
Eurogroup chief: It's an opportunity for a deal
Last question: Are these Greek proposals actually credible?
Moscovici sounds optimistic:
This is a solid basis, but work still needs to be done. We are currently looking for an agreement but we haven’t reached one yet.
Dijsselbloem echoes him, calling the Greek proposals “a welcome step, in a positive direction.”
It is also an opportunity to get that deal this week, and that is what we will work for.
Updated
at 2.18pm BST
2.14pm BST
14:14
What’s the point of having an EU summit tonight, my colleague Ian Traynor asks, if the eurogroup hasn’t reached an agreement with Greece today.
Leaders are always free to have a different view, Dijsselbloem replies.
We tell them our view of the situation, ready for tonight’s meeting.
Another eurogroup later this week - dijsselbloem. A summit with no agenda?
Updated
at 2.15pm BST
2.11pm BST
14:11
“Prior actions” are the key to getting a deal, Dijsselbloem says.
In other words, we want to see what Greece must agree to, and implement, before aid can be unlocked.
2.09pm BST
14:09
How did ministers react to the Greek proposals, and is it true that several versions were submitted?
Yes, there were two versions, one late last night and one this morning. But they were quite similar, so that’s not a big deal, Dijsselbloem says.
We’d have liked them earlier, though.
Updated
at 2.12pm BST
2.08pm BST
14:08
Onto questions:
What is the initial assessment of the Greek proposals?
The general opinion is that they are “broadly comprehensive”, but we need to check they are comprehensive enough, says Dijsselbloem.
Basically they are a basis to restart talks.
2.07pm BST
14:07
Updated
at 2.29pm BST
2.06pm BST
14:06
Christine Lagarde and Klaus Regling are both not here, despite being scheduled to speak....
2.06pm BST
14:06
2.06pm BST
14:06
Moscovici speaks briefly, saying that the new Greek proposals are a good basis to work from.
Updated
at 2.06pm BST
2.05pm BST
14:05
Technical talks will continue, starting this afternoon.
If possible, we will use these new Greek proposals as the basis for a deal. If all goes well, we could reach a final agreement later this week, Dijsselbloem adds.
2.04pm BST
14:04
2.04pm BST
14:04
This will be a very short press conference, declared Dijsselbloem.
Greece has submitted new proposals.... which we welcome.
But given the very short time the institutions had had, they could only give us an initial assessment.
1.59pm BST
13:59
Eurogroup Press conference begins
Get the popcorn ready, because the press briefing is starting any minute.
We’ll hear from eurogroup president Jeroen Dijsselbloem, IMF chief Christine Lagarde, European Commissioner Pierre Moscovici, and also Klaus Regling, who runs Europe’s bailout vehicle, the European Stability Mechanism.
Reminder, you can watch it live here.
1.57pm BST
13:57
EU insiders are briefing that tonight’s EU leaders summit will go ahead.
6 EU sources confirm that the #EuroSummit is on.They underline that it never was meant to find an agreement but to talk openly about #Greece
1.50pm BST
13:50
Vladis Dombrovskis, the European Commissioner responsible for the euro, has declared that the Eurogroup will meet again this week.
Greece’s proposals are a welcome step but more work together with the institutions is needed. Eurogroup will reconvene this week. We need a deal in the coming days.
Updated
at 1.53pm BST
1.47pm BST
13:47
Greek journalist Eleni Varvitsiotis has confirmed that €-ministers haven’t reached agreement on Greece -- indeed, the latest proposals are only a “possible” move forwards.....
Eu source;": No conclusion on basis of current info.Greek proposals welcomed. A "possible" step in right direction. #Eurogroup
1.39pm BST
13:39
Ian Traynor reports that Greece’s lenders are divided.....
#grexit #euco seems there are splits in the troika on the wrong greek paper fiasco
1.38pm BST
13:38
Finland’s finance minister tweets that work will continue over Greece’s proposals - a diplomatic way of saying no deal today.
#Eurogroup ends. Work continues. Institutions assess proposals.
1.31pm BST
13:31
Eurogroup meeting is over
The eurogroup meeting has ended, after barely an hour.
That strongly suggests that very little progress has been made on the latest Greek proposals; so EU leaders won’t be in a position to sign off a deal at tonight’s summit.
A press briefing should start shortly, so we’ll find out exactly what happened soon enough.
It will be streamed live here. (right-click to open in a new tab)
Updated
at 1.45pm BST
1.18pm BST
13:18
Photos from the start of today’s eurogroup meeting are arriving, and they suggest that the mood is grim.
Christine Lagarde looked as gloomy as the weather when she greeted Spain’s Luis de Guindos:
Penny for your thoughts, Wolfgang....
Italy’s Pier Carlo Padoa and France’s Michel Sapin looked contemplative too.
We haven’t received any photos of Yanis Varoufakis inside the building yet - perhaps because he was apparently late for the meeting - but here’s a shot of him arriving:
And here’s Greek PM Alexis Tsipras and Commission president Jean-Claude Juncker heading off for their own talks this morning.
1.07pm BST
13:07
Greece’s finance minister was late for the kick-off of today’s meeting, reports my colleague Ian Traynor, who is also hearing that tonight’s summit won’t yield a deal (no surprise there!)
#grexit @yanisvaroufakis 45 mins late for eurogroup - eurozone source
#grexit #euco no decision expected at summit - top source. just ultimatum to @atsipras. take or leave it and come back with better proposal
Assuming the summit actually happens...
Quite a lot of chatter here in Brussels that there may not be a leaders’ summit at all tonight given how little progress there is to discuss
12.56pm BST
12:56
The domestic political pressure on Alexis Tsipras is intensifying....
Leftist hardliners in #Greece's ruling #Syriza call country's "economic strangulation" blackmail and "neo-colonial ultimatum."
12.54pm BST
12:54
Lunchtime summary: Hopes stubbed out, but markets still rallying
Time for a recap.
The prospect of a major breakthrough in the Greek bailout saga have been knocked back this morning, after it emerged that Athens initially sent the wrong proposals to its creditors last night.
In the last hour, a series of finance ministers have warned that they will be unable to make a ‘final assessment’ of Greece’s latest proposals, which do appear to close the gap with its creditors.
Finance chiefs from Austria, Ireland, Germany, Finland and Slovakia all told reporters in Brussels that they don’t expect big progress today. This means another meeting could be held later this week, leaving Greece’s future handing precariously in the balance.
Ireland’s Michael Noonan says confusion has been rife over the last 12 hours:
There was such confusion in the night, with alternative versions coming in. There hasn’t been any preparation for the meeting. My expectation is that we will be meeting again onThursday before the full Council meeting. We are still not quite clear what the actual proposals are....
Wolfgang Schauble, Germany’s finance minister, warned that it may not be possible to prepare for tonight’s emergency summit of European leaders:
We haven’t received any substantial proposals until now. I can’t see how we can be able to prepare the eurosummit without proposals. It’s not possible to prepare a statement for the euro summit, the status hasn’t changed since Thursday.
Greece’s prime minister Alexis Tsipras looked upbeat this morning, even joking around with Jean-Claude Juncker and earning a slap on the chops when they spoke to the press before their talks.
Tsipras declared:
“This is time for a substantial, viable solution that allows Greece to come back to growth within the eurozone with social justice.”
EU insiders say that Greece’s latest proposals do include compromises on pension reform and VAT rates.
But officials have revealed that Greece initially sent the wrong document to its creditors late last night, scuppering the prospects of a deal today.
Austrian FinMin Schelling: You can't send proposals over at 2AM and then expect decisions by midday. #Eurogroup #Greece
#Schelling: There are obviously "massive communication problems in the #Greek gov't" #Eurogroup #Greece
Back in Greece, the head of the junior coalition party has warned that he won’t accept VAT hikes on the country’s islands.
And the European Central Bank has stepped in again to keep the system running, by granting Greek banks an estimated €2bn fresh liquidity. That suggests the outflow of deposits has increased.
On conference call this morning, @ecb raised #Greece ELA by about €2bn. Agreed another call in 24 hours http://t.co/uIBoLzhy6C
But despite the deadlock, there have not been any signs of panic at Greek banks today.
There isn't a visible bank run in Greece - no queues. But money is leaving the banks, the ECB has increased support 3 times in 5 days.
And financial market are still buoyant, on hopes that a deal will be reached (even if not today):
Dr Sotirios Zartaloudis, lecturer in politics at the University of Birmingham, believes that the threat of Grexit means both sides will strive for a deal.
Despite the considerable differences remaining between the parties, everyone involved has a high incentive to reach a compromise.
Greece would be economically, politically and socially devastated if it left the Euro, while a Grexit may cause considerable knock-on effects to other Eurozone members and the EU as a whole.’
Updated
at 12.56pm BST
12.26pm BST
12:26
Austria’s finance minister, Hans Jörg Schelling, has scooped the award for the most unamused attendee at today’s meeting.
Schelling told reporters that he doesn’t expect a final deal today, and even hinted that Greece should start picking up the tab for these meetings....
Thanks to Eurasia Group’s Famke Krumbmüller for the translation:
Schelling: "I dont think we can reach final agreement today, we will need another Eurogroup this week" #Greece #eurogroup
Schelling: "there are no new proposals, all things we had proposed earlier, shows problem of communication within Gr govt"#Greece #eurogroup
Schelling (dark joke): At some point we're going to have to decide who's going to pay for our travel to repeated #Eurogroups. #Greece
12.21pm BST
12:21
Yanis Varoufakis, Greece’s finance minister, didn’t speak to the press as he arrived at the eurogroup meeting.
He swiftly headed inside, for what could be a rather uncomfortable meeting....
12.18pm BST
12:18
Commissioner Pierre Moscovici remains more optimistic than the rest of the bunch.
He tells the increasingly soggy press pack that the Greek proposals do represent “progress”, but more work needs to be done.
12.15pm BST
12:15
Spanish finance minister Luis de Guindos says there is still time for a breakthrough with Greece, as the rain splatters down in Brussels
de Guindos: "we still have time, but less and less" #Greece #eurogroup
12.11pm BST
12:11
Most the finance ministers arrived so far looked like their dog has just died. What a cheerful bunch! #Greece #Eurogroup
12.08pm BST
12:08
Slovakia’s finance minister, Peter Kazimir, tells reporters wryly that “we might see each other soon”, as he arrives at the eurogroup meeting.
Last week, Kazimir told us that he “believes in miracles”, regarding a Greek deal. Hopefully he still does....
12.05pm BST
12:05
Dijsselbloem: impossible to have final assessment today
Jeroen Dijsselbloem, president of the Eurogroup, has just arrived at the meeting, and confirmed that pessimism is rife.
Is this the basis for a big breakthrough?
I leave that up to the institutions [Greece’s creditors] to give their views first, Dijsselbloem replies, but the Greek proposals have only arrived very late...
Thus:
It is impossible to have a final assessment....we’ll see if we have the basis for final talks.
Dijsselbloem says Greek proposals have only come in v v recently so it will be impossible to have a final assessment.
And then he broke away, without saying if he expects yet another another eurogroup meeting this week (as Michael Noonan suggested).
11.59am BST
11:59
This is not looking good. Germany’s Wolfgang Schäuble has told reporters that the eurogroup don’t have new proposals to work on.
He was speaking in German, with lots of shrugs and ‘neins’ to drive the point home:
Schauble: 'we dont have anything new, we have not moved since last Thursday' #Greece #eurogroup
11.50am BST
11:50
Sounds like last night's mix-up in #Greece submissions may scupper changes of deal today. Both @alexstubb & @NoonanLive say deal unchievable
11.50am BST
11:50
Ireland's Noonan: Very low expectations for today
Ireland’s finance minister, Michael Noonan, does not look a happy man at all, as he arrives at the eurogroup.
Noonan says he has “very low expectations” for a deal.
And that’s because the eurogroup hasn’t been able to make any useful preparation ahead of tonight’s emergency EU summit, because of the “confusion” caused by Greece submitting various different proposals through the night.
"Such confusion during night w/alternative versions of #Greece proposal coming in; there hasn't been proper preparation," says @NoonanLive
Noonan predicts that the eurogroup could be back again on Thursday (!), to lay the ground ahead of the scheduled EU leaders meeting.
What does the confusion over Greece’s proposals say about the situation?
It says a lot about the state of play in Athens, not the rest of Europe, Noonan responds, before vanishing out of the rain.
11.41am BST
11:41
Finland's finance minister: I don't foresee a breakthough today
Alexander Stubb, Finland’s finance minister, has braved the weather....to pour a big bucket of cold water over those expecting a big breakthrough today.
Stubb told reporters that :
I’ve got very low expectations for today.
Alex Stubb, Finland's finmin, keeps it brief: "I have very low expectations for today." #EuroSummit
And then added:
It seems to be a Monday where we have wasted a lost of air miles, as finance ministers and heads of state....
I don’t foresee a breakthrough today.
Updated
at 11.57am BST
11.36am BST
11:36
Several eurozone ministers have chosen to scamper into the building to avoid the rain, rather than speaking to the press.
Best thing bout the rain - spares us endless moronic ministerial soundbites going in #grexit
11.29am BST
11:29
IMF chief Christine Lagarde gave reporters a no-nonsense wave as she arrived for her meeting with Alexis Tsipras in Brussels.
(unless she’s rehearsing a Juncker-style slap of her own....)
Updated
at 11.31am BST
11.27am BST
11:27
The EC’s top spokesman, Margaritis Schinas, tells the midday press conference we have “a very important day ahead of us”, with several key meetings on Greece.
The commission’s position.... is that the document received by the Greek PM represents a good basis for progress in the eurozone summit.
But which proposal is being discussed?
We have a document signed by the Greek PM, that’s what the Institutions are discussing, fires back Schinas.
11.21am BST
11:21
Greek government bonds are continuing to rally this morning, despite some concerns that we might not get a major agreement tonight:
Greek bonds extend rally. 2yr yields slump to 24.3%. pic.twitter.com/Af6rRn7wzP
11.19am BST
11:19
Belgium’s finance minister, Johan Van Overtveldt, dampened expectations of a big breakthrough today.
He told reporters outside the Eurogroup that ministers need to see what Greece is proposing.... (maybe Van Overtveldt is foxed by the news they sent the wrong document last night)
Not a great start to talks on Greece's proposals. Belgium's finance minister says bit confusing exactly what was on the table.
Belgian FinMin Van Overtveldt cautious, needs to see what's exactly on the table, says current programme remains "reference point". #Greece
11.10am BST
11:10
French president Francois Hollande has also cautioned that the big deal might not come tonight, flags up AFP’s Alex Pigman:
Hollande and Merkel separately refer to Greece deal in the "coming days", reducing expectations for big announcements tonight.
11.07am BST
11:07
EU insiders say that the new Greek proposal is a “good basis for discussion”, reports our Europe editor Ian Traynor.
Gk props easily most detailed/credible from @atsipras - eu official. 'Don't know if will fly but good basis for discussion'
Ian confirms that Greece has made some concessions (as flagged a few minutes ago)
Gk props- keeps 3-tier VAT but low rate only for couple 'social' items.No rise in electricity VAT.But concessions on pensions too. Eu source
Updated
at 11.08am BST
11.01am BST
11:01
It’s about to get quite busy.
Eurozone finance ministers will arrive for today’s emergency Eurogroup meeting shortly, and should speak to the press on their way in (here’s a live feed from outside the building).
And that clashes nicely with the regular EU midday briefing, (it should be streamed here now).
Updated
at 11.21am BST
11.00am BST
11:00
Merkel: We've got a few days yet
Angela Merkel has just predicted that it might take a few more days to reach a Greek agreement.
Speaking to reporters in the German city of Magdeburg, chancellor Merkel warned that EU leaders can’t take any decisions at tonight’s emergency summit unless they have a recommendation from Greece’s lenders.
There are still a lot of days in the week in which decisions can be taken.
So the crisis might rumble on.....
Updated
at 11.57am BST
10.53am BST
10:53
Reuters has got hold of the latest Greek reform proposals, which includes some pension changes.
The key here is how “gradually” this would happen; fast enough to deliver the savings which the institutions want?
And it appears Greece is agreeing that more items should be taxed at the top VAT rate, with fewer exemptions. It still wants to keep its 6% basic rate (which institutions wish to abolish)
The upshot is that a final deal is unlikely today:
10.35am BST
10:35
The Guardian is holding a panel discussion on Greece, Grexit and the troika on Thursday. Come along to have your say.
See below for more details.
Membership Event: Guardian Newsroom: Should Greece leave the Euro?
Updated
at 10.37am BST
10.30am BST
10:30
Angelique Chrisafis
Over in the Greek city of Thessaloniki, there’s no sign of a bank run among the crisis-weary population.
My colleague Angelique Chrisafis reports
In Thessaloniki, Greece’s second biggest city, cash-points were quiet around Aristotelous Square. There were no queues and the few people stopping to use ATMs were often just checking their balance or paying bills. Many felt weary at what they said felt like the umpteenth so-called “knife-edge” moment in years of economic crisis.
“I did ask my mum whether I should be worried and needed to withdraw cash but she said ‘Of course not’,” said Elena, 19, a psychology student checking her current account balance. “It does feel like we’ve been at this point of crisis talks so many times over the past few years.”
She added:
“My biggest worry is my future. I’m seriously considering going abroad to find a job and to be able to have children and get married.
I want children in the future but I don’t feel I could start a family without being sure of having the money to raise them. I’d like to be a psychologist and here, with 60% youth unemployment, the only job I could find would be in a café or bar, if that.
My mother, a music teacher, has lost her job.”
Tassos, an accountancy graduate, who finished his military service five days ago, had checked his balance and wouldn’t be withdrawing any cash for the day. He was living off support from his farmer parents in rural nothern Greece while he looked for a job.
“The ideal would be to get an accountancy job in a company,” he said, conceding that it wouldn’t be easy.
In #Thessaloniki to hear about the impact on daily lives of the talks, uncertainty & economic situation. Keen for all views #Greece
Updated
at 10.37am BST
10.14am BST
10:14
Sorry for the typos in that last post - please refresh to get a cleaned-up version.
10.08am BST
10:08
Tsipras: It's time for a substantial solution (and a slap from Juncker)
Alexis Tsipras has arrived at the EC for talks with Jean-Claude Juncker, and a brief chat to reporters:
Tsipras tells the press pack:
This is time for a substantial and viable solution that will allow Greece to come back to growth within the eurozone, with social justice and cohesion.
Juncker is more cautious, says that he doesn’t know if there will be a deal today.
There’s then a classic moment.... after Tsipras speaks in Greek, Juncker jokes that although he’s getting more fluent in Greek, he can’t follow everything
Don’t worry, Tsipras smiles, I told them:
Everything that I said...it’s in your position.
(ie, he was speaking on Juncker’s behalf)
Which earns him a mock-slap from the EC president.
Updated
at 10.13am BST
9.54am BST
09:54
Alexis Tsipras is about to arrive at the European Commission for talks with EC president Jean-Claude Juncker.
Will be get one of Juncker’s famous kisses? Watch this live feed to find out....
Prepare for handshakes, look for kissing. Tsipras about to do photo op with Juncker ahead of Greek D-Day. @tsipras @JunckerEU #euco
9.52am BST
09:52
Helena Smith
Greek prime minister Alexis Tsipras faces an uphill battle back home over the compromise plan being hammered out with lenders, with his coalition partner refusing to accept tax rises on Greek islands.
From Athens, Helena Smith reports
Panos Kammenos, the defence minister who also heads the coalition government’s junior partner, the right-wng Independent Greeks party, Anel, is adamantly opposed to VAT rates being raised on islands in the Aegean.
I’m hearing that Kammenos says VAT on islands is his party’s bottom line to stay in the government. Top Anel insiders suggest that the right-wing populist party could withdraw from the coalition in the event of VAT being raised on Aegean islands close to Turkey.
Kammenos fears that if Greek islanders lose the privilege of low VAT they would “get in their boats and go and shop opposite [in Turkey], local markets would dissolve and islands would close.”
The money, he said, could be found by increasing taxes by 1% on luxury good and raising levies on properties owned by off-shore companies.
Positive mood in BXL while in #Greece ANEL leader Kammenos says that scrapping the 30% VAT discount for the Aegean islands is a casus belli
The hardline Syriza MP Alexis Mitropolos is also concerned about the possible agreement. He told state- run television channel, ERT, this morning, that:
“But what nation would accept such measures, what nation would be able to bear such these policies?”
Konstantinos Michalos, who heads the Athens chamber of commerce and industry (ACCI) summed up the situation:
“The government is facing a very difficult dilemma....between painful measures or rupture (from the EU).”
9.40am BST
09:40
The French and German stock markets are on an absolute tear this morning - both up over 3%:
Germany's DAX +3.5%, on track for its best day in 3 years.
9.38am BST
09:38
Greek journalist Eleni Varvitsiotis reports that Athens has submitted a new proposals, slightly different to the old one....
New #Greek proposal sent just now with slight differences
Updated
at 9.38am BST
9.31am BST
09:31
Finland’s finance minister isn’t happy with the Brussels weather, for such a crucial day:
Brussels greets us with +12C and rain. #summer
And you can see why:
Déluge sur Bruxelles ce matin...drôle de temps estival pour une journée decisive ! pic.twitter.com/dHyjZe0l2m
9.23am BST
09:23
OK, I’ve picked my jaw up off the floor now. Greece apparently sent the wrong document to its creditors late last night.
That’s according to Anne-Sylvaine Chassany and Peter Spiegel of the Financial Times, who report:
Three senior officials say there’s been a mix-up with the documents sent to the bailout monitors.
“It’s not so dramatic, but they sent the wrong one by mistake,” said one of the officials...
The officials said the Greeks intended to submit a new version this morning, but it remained unclear whether they had done so. Two officials said they received a revised version during the early morning hours on Monday, but the third official said they had not yet received the new version.
More here:
3 sr officials tell me #Greece told institutions they sent wrong document at midnight. Have promised revised version http://t.co/ae5yDfC1U4
Regular readers will know that Greece suffered a similar hitch back in February, when it apparently sent the wrong letter to Germany. Easily done, I’m sure.
Let he who has not (twice) submitted the wrong document to his creditors while trying to avoid a catastrophic default cast the first stone.
Updated
at 9.36am BST
9.13am BST
09:13
Reuters: ECB raises emergency liquidity cap
Reuters just flashed up that the European Central Bank has agreed to provide more emergency liquidity for Greek banks:
Looks like their meeting was earlier than we expected.
Updated
at 9.15am BST
9.11am BST
09:11
Greek stock market surges
The wave of optimism sweeping Europe has reached Athens.
Traders are rushing to buy shares, on hopes that a six-month bailout extension will be agreed today, to unlock €18bn of aid.
The main Greek banks are up by over 10%, as they react to the news that Greece submitted new proposals late last night, which are seen as the “basis for progress”.
And that has pushed the main ATG index up 6% in early trading -- a big move, but it only claws back some of its recent losses.
Updated
at 12.49pm BST
9.04am BST
09:04
News of a fresh Greek proposal have had a “magical effect on the markets”, says Connor Campbell, financial analyst at SpreadEX.
The main reason behind the positivity is hope that this latest Greek proposal contains the much needed concessions the country’s creditors have been looking for; described as ‘a good basis for progress’, already these proposals have been received better than the usual ‘insulting’ attempts at reform.
Traders are now watching whether today’s series of meetings are a success. As our agenda explains, the ECB discusses Greek banks shortly, then Tsipras meets Lagarde, Draghi, Juncker and Djisselbloem, then finance ministers convene at the Eurogroup, and finally it’s over to EU leaders for their summit..
Campbell adds:
After a month of interminable claims and counterclaims from each side, there is a bit of excitement on the markets and the genuine semblance of optimism; now this sentiment just has to last the day.
8.59am BST
08:59
Insiders in Brussels are making optimistic noises this morning. And that’s significant, as they have now had more than nine hours to digest the latest proposals from Greece:
Optimism spreading in Brussels. EU officials: "We´re not at the point where we should be, but we´ll reach it." "Greece is moving." #Greece
8.54am BST
08:54
Journalists are poised in Greece ready for queues at the cash machines, but there’s no sign of panic:
Journalistes allemands attendant le bankrun. Courage à eux. #Grèce pic.twitter.com/tcc4Kx6XcP
8.50am BST
08:50
Bruno Macaes, Portugal’s Secretary of State for Europe, says it’s vitally important to get a Greek deal soon.
He told Radio 4’s Today Programme that:
Time is running out and we need a fundamental solution to the problem
It would be “bad for the eurozone for a whole” if Greece left the single currency, Macaes said. It would also probably spark a “new commitment to integration”, to avoid other countries coming under fire.
Portugal was bailed out back in 2011, and Macaes says he’s “very confident” of avoiding a repeat:
Everything we have done in the last three years is to avoid being pulled back into this market turbulence.
8.43am BST
08:43
If a final deal isn’t reached today, EU leaders have another opportunity later this week when they hold their next summit:
High expectations for today's last-minute #Greece summit. The only way Europe knows. Remember there's another one Friday if no deal tonight.
8.42am BST
08:42
Here’s another sign of rising confidence that significant progress will be made at today’s meetings.
The interest rates (or yield) on Greek government has fallen sharply in early trading, showing traders see a lower risk of default.
The yield on two-year Greek debt has tumbled to 24.9%, down from 28.5% on Friday. That’s a really chunky move (but also means the bonds are seen as very risky).
10-year Greek bond yields are down by 1 percentage points, from 12.6% to 11.6%.
Typically, a country is locked out of the markets when its 10-year bond yields hit 7%, so Greece has a long way to go yet....
8.29am BST
08:29
Are the markets over-reacting? It certainly wouldn’t be the first time that shares have surged on hopes of a deal, only to fizzle out.
Investors are calculating that a) Greece’s latest proposals offer genuine prospects of a deal, and b) European leaders aren’t prepared to let the eurozone fragment.
Hey Eurozone, markets: we've been v confident and hopeful *many* times before, and look where we are now. Hold your horses (for now) #Greece
8.24am BST
08:24
European markets are a sea of green this morning:
Major European indices - FTSE100 and DAX - have jumped up to 1 week+ highs on hopes of this Greek deal.
8.21am BST
08:21
The key question is whether Greece has made sufficient concessions on pensions, says Frederik Ducrozet, economist at Credit Agricole.
*If* creditors are satisfied with Greek proposals on pensions, we should get the basis for a deal and no ELA cap.
ELA is the emergency liquidity assistance provided by the European Central Bank to keep Greek banks functioning, now totalling €84bn.
8.13am BST
08:13
There is “new hope of progress in Greek bailout negotiations” in the City today, says Mike van Dulken of Accendo Markets, after Athens has presented new proposal to creditors late last night.
8.10am BST
08:10
Germany’s DAX has leapt by 2.5%, as Frankfurt traders embrace optimism over Greece....
8.04am BST
08:04
European shares rally on Greek deal hopes
European stock markets have surged that the start of trading, on hopes of a long-awaited deal on Greece today.
In London, the FTSE 100 has jumped by 72 points, or 1.1%, as investors welcome the news that Greece submitted new compromise proposals overnight.
In Paris, the French CAC leapt by 2.2% and the Italian market is up 1.8%.
More to follow...
Updated
at 11.02am BST
8.00am BST
08:00
From Brussels, my colleague Jennifer Rankin sums up the situation:
Greece has submitted 11th-hour concessions to its creditors ahead of a crucial day of talks aimed at preventing it from crashing out of the eurozone.
Its proposal followed a hectic round of telephone diplomacy on Sunday between Germany’s chancellor, Angela Merkel, the French president, Francois Hollande, and the European Commission president, Jean-Claude Juncker.
Juncker’s head of cabinet, Martin Selmayr, said the Athens proposal offered “a good basis for progress”, though he described the negotiations as a “forceps delivery”, underscoring the exertions to prevent Greece leaving the eurozone.
It was not immediately clear how far the Greek plan met its creditors’ demands for spending cuts and welfare reforms.
Related: Greek debt crisis: Tsipras concessions welcomed as 'good basis for progress'
7.51am BST
07:51
City traders are predicting that the German stock market will leap this morning, on hopes of a breakthrough today....
And German Dax forecast +290 points (!!) at 11,330, on Greek rumours.
7.45am BST
07:45
Moscovici: Convinced we'll get a deal
EU economic commissioner Pierre Moscovici has declared that a solution will be found to tackle the Greek crisis, after Athens submitted new proposals late last night.
Speaking on Europe 1 radio, Moscovici said today is a “decisive, vital” day for Greece, adding:
We’ll be having meetings with [Greek PM Alexis] Tsipras which, I hope and I am convinced, will allow us to reach an agreement this evening”.
“We are moving in the right direction, we have solid ground for a deal, we just have to consolidate that today ...
I think that the political will of everyone to preserve the euro, this common good, to ensure that this single currency is irreversible, will win the day.”
(thanks to Reuters for the quotes)
"Journée décisive, vitale. Je pense que la volonté de tous de préserver l'euro l'emportera" @pierremoscovici #E1matin pic.twitter.com/7XUJrxcrYh
He’s just tweeted this message too:
La volonté politique de tous est de préserver l'#Euro, ce bien commun irréversible #Grèce @Europe1
Updated
at 7.54am BST
7.31am BST
07:31
Optimism is building that we will, finally, see meaningful progress today.
As Luxembourg’s foreign minister Jean Asselborn told Germany’s Deutschlandfunk radio a few minutes ago:
“There will be a lurch forward.”
7.24am BST
07:24
The Agenda: Lots of meetings
Today will be packed with top level meetings. Here’s the running order:
Updated
at 7.39am BST
7.05am BST
07:05
Introduction: Greece's future in the balance
Good morning.
Hope you all had a relaxing weekend, because today should be as dramatic as anything we’ve seen since the eurozone crisis began over five years ago.
In the coming hours, the most powerful politicians and officials in Europe will hold a series of emergency meetings that will, most likely, determine the future of both Greece and the wider eurozone.
This really could be the last possible chance to reach a deal to avert Greece defaulting, possible exiting the eurozone, and potentially giving the financial markets and the world economy a seismic jolt.
The goal? Hammering out an agreement to finally unlock bailout funds for Greece, which have been locked away for months as its government has tussled with the eurozone.
That deadlock was broken late last night, when the Greek government submitted new proposals to the heads of the International Monetary Fund, the European Central Bank, and the European Commission.
New Greek proposal received by @JunckerEU, @Lagarde, @ecb. Good basis for progress at tomorrow's EuroSummit. In German: "eine Zangengeburt".
Eine Zangengeburt means forceps delivery, by the way.....
@GreekAnalyst @MartinSelmayr @JunckerEU @Lagarde @ecb not so much forceps delivery as Caesarian section, I'd say. But to what end?
Those proposals will be scrutinised this morning, when Greece’s prime minister, Alexis Tsipras, meets IMF chief Christine Lagarde, ECB president Mario Draghi, EC president Jean-Claude Juncker, and Eurogroup president Jeroen Dijsselbloem (chair of the eurozone finance ministers).
That will be followed by a eurogroup meeting (where details of a deal could be thrashed out), and then an EU leaders summit tonight.
So, what might the deal be?
Greece’s creditors are prepared to sign up for a short-term deal to extend the existing bailout by another six months, injecting up to €18bn of loans into the cash-starved Greek economy. They could also make some kind of pledge about debt restructuring, as part of a third bailout.
As my colleague Ian Traynor wrote last night:
Brussels sources also signalled moves to address Tsipras’s key demand – that the creditors need to offer debt relief to Greece.
Some form of debt restructuring would be promised to Athens in the future, but it would come with strings attached and not as part of the current bailout package, they said.
Related: Greek debt crisis: Tsipras concessions welcomed as 'good basis for progress'
That package expires in just nine days time; so failure today could trigger the slide towards capital controls, given Greece owes €1.6bn to the IMF on 30 June as well.
But Greece will need to persuade its creditors that it is now offering the ‘credible, concrete’ proposals demanded for months. That means accepting tougher budget surplus targets, savings on pensions, VAT rates and labour market reforms – areas where progress have been stymied for months.
But there’s nothing like a finally-final deadline to get things moving. And there was frenzied activity over the weekend, with world leaders holding phone calls and Alexis Tsipras convening a cabinet meeting to discuss strategy.
Negotiators in Brussels worked late into the night too -- waiting for that crucial breakthrough
Midsummer's Night Celebration in Brussels' EU Commission. #Greece pic.twitter.com/bIFl3Yd1G4
And there were anti-austerity, pro-government protests in Athens last night too:
But will Greece’s banks cope?
Greek bankers are bracing for a difficult day. Although a bank run has been avoided, deposits have been exiting the system at a worrying levels.
According to Reuters, around €1bn of orders have already been placed over the weekend to be carried out today, on top of €4.2bn withdrawn last week.
But the news that Greece has submitted new proposals might ensure relative calm in Greece.
We’ll be tracking all the developments as usual, with correspondents in Brussels and Athens covering what should be a dramatic day.
