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Greek debt crisis: Alexis Tsipras seeks last chance deal - live Greek debt crisis: Alexis Tsipras seeks last chance deal - live
(35 minutes later)
10.30am BST10:30
The Greek government is to blame for the current crisis and not Germany, according to Italy’s foreign minister Paolo Gentiloni. APF reports:
Greeks have their own leaders to blame for the crisis in their country, and not “mean Germans”, Gentiloni said Tuesday.
The current crisis “...is not the fault of mean Germans, but is the responsibility of the Greek governments which have followed one another these past 15-20 years,” he told the Italian daily Corriere della Sera.|
Germany, the eurozone’s de facto paymaster, has been the driving force behind requiring austerity policies to accompany bailout help for Greece.
German Chancellor Angela Merkel said Monday that conditions for a new Greek rescue package “have not yet been met.”
10.25am BST10:25
Capital Economics reckons a Grexit is likely sooner or later whatever happens today:
A #Greek deal covering financing for 6-12m & minor debt relief in exchange for creditors' last demands might kick the can down the road(1/2)
But as we have always stressed, only a huge write-down can return #Greek debt to sustainable levels. Points to #Grexit sooner or later (2/2)
10.04am BST10:0410.04am BST10:04
Asked whether the Greek referendum success would mean other populist governments might use a plebiscite as a political weapon, he said:Asked whether the Greek referendum success would mean other populist governments might use a plebiscite as a political weapon, he said:
“This has been discussed...what would happen if a referendum in another country put in doubt a compromise with Greece.“This has been discussed...what would happen if a referendum in another country put in doubt a compromise with Greece.
“We are in a difficult situation but we hope will will get a compromise acceptable to everyone.”“We are in a difficult situation but we hope will will get a compromise acceptable to everyone.”
10.00am BST10:0010.00am BST10:00
European president Martin Schulz has said he wants Greece to remain n the eurozone. European president Martin Schulz has said he wants Greece to remain in the eurozone.
He told a press conference: “I’m in favour of keeping the eurozone together. Those who want to split up the eurozone are wrong.”He told a press conference: “I’m in favour of keeping the eurozone together. Those who want to split up the eurozone are wrong.”
But he said it all depended on the new proposals from the Greek government: “Confrontation is not a solution... we need to get both sides together.”But he said it all depended on the new proposals from the Greek government: “Confrontation is not a solution... we need to get both sides together.”
Updated at 10.05am BST
9.52am BST09:529.52am BST09:52
Euro falls ahead of summitEuro falls ahead of summit
With fears growing that Greece will leave the eurozone, as leaders travel to Brussels for last ditch talks, the euro is coming under pressure. It is now fallen to below $1.10, its lowest level for more than a month.With fears growing that Greece will leave the eurozone, as leaders travel to Brussels for last ditch talks, the euro is coming under pressure. It is now fallen to below $1.10, its lowest level for more than a month.
9.26am BST09:269.26am BST09:26
At least three companies in Greece are paying staff in cash after the capital controls imposed last week to limit withdrawals from banks, according to Reuters.At least three companies in Greece are paying staff in cash after the capital controls imposed last week to limit withdrawals from banks, according to Reuters.
The companies include Kotsovolos, the country’s biggest electronics retailer and a subsidiary of Britain’s Dixons Carphone.The companies include Kotsovolos, the country’s biggest electronics retailer and a subsidiary of Britain’s Dixons Carphone.
9.21am BST09:219.21am BST09:21
Here’s an interesting chart from the economics team at RBS:Here’s an interesting chart from the economics team at RBS:
#Greece austerity gauge. Greek government spending has fallen 20% since 2008. In UK and Italy it's up. #GreekCrisis pic.twitter.com/WMQBxxVFqq#Greece austerity gauge. Greek government spending has fallen 20% since 2008. In UK and Italy it's up. #GreekCrisis pic.twitter.com/WMQBxxVFqq
8.59am BST08:598.59am BST08:59
Greece’s stock market will remain closed until Wednesday according to the Greek Capital Markets Commission, in line with the extended bank holiday.Greece’s stock market will remain closed until Wednesday according to the Greek Capital Markets Commission, in line with the extended bank holiday.
8.46am BST08:468.46am BST08:46
Twitter (Varoufakis quits announcement), Facebook (Italian prime minister’s latest view on what must be done), and now texting. The modern way to run a crisis.Twitter (Varoufakis quits announcement), Facebook (Italian prime minister’s latest view on what must be done), and now texting. The modern way to run a crisis.
Now that's a relief: @JunckerEU says he's texting @tsipras_eu . Crisis solved!Now that's a relief: @JunckerEU says he's texting @tsipras_eu . Crisis solved!
8.37am BST08:378.37am BST08:37
Christine Lagarde, managing director of the International Monetary Fund, will reportedly be staying at home rather than attending the day’s meetings in Brussels.Christine Lagarde, managing director of the International Monetary Fund, will reportedly be staying at home rather than attending the day’s meetings in Brussels.
Not a surprise really. Greece is already in arrears with the IMF after failing to make a $1.5bn payment due at the end of last month, so it is unlikely the fund would be taking part in any new bailout until that money is paid.Not a surprise really. Greece is already in arrears with the IMF after failing to make a $1.5bn payment due at the end of last month, so it is unlikely the fund would be taking part in any new bailout until that money is paid.
And the IMF also threw a spanner into the works just ahead of Greece’s referendum by saying that debt relief should be part of any new package, something seized on by Alexis Tsipras and his colleagues.And the IMF also threw a spanner into the works just ahead of Greece’s referendum by saying that debt relief should be part of any new package, something seized on by Alexis Tsipras and his colleagues.
8.29am BST08:298.29am BST08:29
And if 16 out of 18 eurozone countries are in favour of Greece leaving then who are the other two?And if 16 out of 18 eurozone countries are in favour of Greece leaving then who are the other two?
@notayesmansecon France and Cyprus?@notayesmansecon France and Cyprus?
@notayesmansecon @minefornothing I suspect France and Italy?@notayesmansecon @minefornothing I suspect France and Italy?
@notayesmansecon @minefornothing don't think so - France because they've been softer on Greece and Italy cos they could be next@notayesmansecon @minefornothing don't think so - France because they've been softer on Greece and Italy cos they could be next
Updated at 8.33am BSTUpdated at 8.33am BST
8.25am BST08:258.25am BST08:25
European markets edge higherEuropean markets edge higher
Investors remain cautious ahead of the day’s meetings, with markets edging higher in early trading.Investors remain cautious ahead of the day’s meetings, with markets edging higher in early trading.
The FTSE 100 has added 0.1%, France’s Cac is 0.2% better, Germany’s Dax has risen 0.14%, Italy’s FTSE MIB is up 0.6%, and Spain’s Ibex has added 0.2%.The FTSE 100 has added 0.1%, France’s Cac is 0.2% better, Germany’s Dax has risen 0.14%, Italy’s FTSE MIB is up 0.6%, and Spain’s Ibex has added 0.2%.
In the bond market Greek two-year and ten year yields have slipped back slightly, while ten-year yields for other peripherals - Italy, Spain and Portugal - are also a little lower.In the bond market Greek two-year and ten year yields have slipped back slightly, while ten-year yields for other peripherals - Italy, Spain and Portugal - are also a little lower.
8.19am BST08:198.19am BST08:19
And today’s “Ball is in the Greek’s court Award” goes to European Commission president Jean-Claude Juncker.And today’s “Ball is in the Greek’s court Award” goes to European Commission president Jean-Claude Juncker.
Speaking in Strasbourg, he said:Speaking in Strasbourg, he said:
LIVE: @JunckerEU addresses @Europarl_EN: the ball is on #Greece's court; it 'll have to explain how we reach an agreementLIVE: @JunckerEU addresses @Europarl_EN: the ball is on #Greece's court; it 'll have to explain how we reach an agreement
The Greek gov must explain in Bxl today how it sees us extricating ourselves from this situation. #Greece #EurosummitThe Greek gov must explain in Bxl today how it sees us extricating ourselves from this situation. #Greece #Eurosummit
EC Juncker: "I am against #Grexit. Some in EU are openly or covered in favor of Grexit. EC will do anything against it" #GreeceEC Juncker: "I am against #Grexit. Some in EU are openly or covered in favor of Grexit. EC will do anything against it" #Greece
#Juncker: 'Very saddened that Greek gov't left the negotiating table'#Juncker: 'Very saddened that Greek gov't left the negotiating table'
*JUNCKER: EU READY TO DO WHATEVER NECESSARY TO REACH GREEK PACT*JUNCKER: EU READY TO DO WHATEVER NECESSARY TO REACH GREEK PACT
Juncker: 'We will not reach a deal with Greece today' http://t.co/WpKyqEdvq5 via @BIUK_FinanceJuncker: 'We will not reach a deal with Greece today' http://t.co/WpKyqEdvq5 via @BIUK_Finance
But he must be glad to see the back of Yanis Varoufakis, the former Greek finance minister who described the country’s creditors as “terrorists”But he must be glad to see the back of Yanis Varoufakis, the former Greek finance minister who described the country’s creditors as “terrorists”
Juncker: Is is unacceptable for the #greece govt to call us "terrorists"Juncker: Is is unacceptable for the #greece govt to call us "terrorists"
#Juncker: the Commission and its President have tried hard to find deal, if only everyone had tried as hard#Juncker: the Commission and its President have tried hard to find deal, if only everyone had tried as hard
Updated at 9.03am BSTUpdated at 9.03am BST
8.07am BST08:078.07am BST08:07
Interesting snippet in the report on Monday’s events by Greek newspaper Kathimerini:Interesting snippet in the report on Monday’s events by Greek newspaper Kathimerini:
According to sources in Brussels, 16 of the other 18 countries in the eurozone are in favor of letting Greece leave the eurozone and they will have to weigh up the cost of any agreement to keep Athens in the single currency.According to sources in Brussels, 16 of the other 18 countries in the eurozone are in favor of letting Greece leave the eurozone and they will have to weigh up the cost of any agreement to keep Athens in the single currency.
7.58am BST07:587.58am BST07:58
Breaking news:Breaking news:
S&P Believes That Greece Could Default On Debt Payment As Soon As This Week -Situation In Greece Is Leading To Return Of Econ. DepressionS&P Believes That Greece Could Default On Debt Payment As Soon As This Week -Situation In Greece Is Leading To Return Of Econ. Depression
7.57am BST07:577.57am BST07:57
Timetable for key meetingsTimetable for key meetings
Here are the expected timings for two Brussels meetings later.Here are the expected timings for two Brussels meetings later.
First the Eurogroup of finance ministers:First the Eurogroup of finance ministers:
12:00 (Brussels time, 11.00 BST) Arrivals12:00 (Brussels time, 11.00 BST) Arrivals
13:00 Roundtable chaired by Eurogroup President Jeroen Dijsselbloem13:00 Roundtable chaired by Eurogroup President Jeroen Dijsselbloem
The agenda is as follows:The agenda is as follows:
The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities.The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities.
And here’s the details of the leaders’ summit:And here’s the details of the leaders’ summit:
From 17.00From 17.00
Arrival of the heads of state or government of the Euro areaArrival of the heads of state or government of the Euro area
18.0018.00
Working dinnerWorking dinner
at the end of the meetingat the end of the meeting
Press conference by the President of the European Council and the President of the European CommissionPress conference by the President of the European Council and the President of the European Commission
7.47am BST07:477.47am BST07:47
And European markets are forecast to open higher ahead of the day’s key meetings:And European markets are forecast to open higher ahead of the day’s key meetings:
Our European opening calls: $FTSE 6557 up 21 $DAX 10931 up 40 $CAC 4726 up 15 $IBEX 10590 up 50 $MIB 21707 up 106Our European opening calls: $FTSE 6557 up 21 $DAX 10931 up 40 $CAC 4726 up 15 $IBEX 10590 up 50 $MIB 21707 up 106
7.46am BST07:467.46am BST07:46
Markets came under pressure on Monday following the No victory in the Greek referendum, but things were nothing like as bad as some had feared. Economist Ian Williams at Peel Hunt said:Markets came under pressure on Monday following the No victory in the Greek referendum, but things were nothing like as bad as some had feared. Economist Ian Williams at Peel Hunt said:
Given the apocalyptic predictions of the consequences of a Greek ‘no’ vote made before the weekend, losses of around 2% for the Eurozone indices should have been greeted with a sigh of relief. Similarly, the moves in Eurozone bond markets were modest, in the context of recently heightened levels of volatility. That sanguine response may not be so much based on optimism that a compromise deal can still be reached (given the removal of Mr Varoufakis) as reflecting a judgement that, even if Grexit is now more likely than before, the broader economic consequences for the region can be contained.Given the apocalyptic predictions of the consequences of a Greek ‘no’ vote made before the weekend, losses of around 2% for the Eurozone indices should have been greeted with a sigh of relief. Similarly, the moves in Eurozone bond markets were modest, in the context of recently heightened levels of volatility. That sanguine response may not be so much based on optimism that a compromise deal can still be reached (given the removal of Mr Varoufakis) as reflecting a judgement that, even if Grexit is now more likely than before, the broader economic consequences for the region can be contained.
The Eurozone’s peripheral markets were understandably less sanguine than the core, with Italy’s MIB index losing 4% and the IBEX in Spain 2.2%.The Eurozone’s peripheral markets were understandably less sanguine than the core, with Italy’s MIB index losing 4% and the IBEX in Spain 2.2%.
Asian markets were mixed, with the Nikkei up 1.3% but the Hang Seng down 0.6%.Asian markets were mixed, with the Nikkei up 1.3% but the Hang Seng down 0.6%.
And China continued its recent slump:And China continued its recent slump:
Related: China stocks tumble again after premier Li Keqiang fails to mention crisisRelated: China stocks tumble again after premier Li Keqiang fails to mention crisis
Updated at 7.57am BSTUpdated at 7.57am BST
7.38am BST07:387.38am BST07:38
Introduction: Leaders await new Greece proposalsIntroduction: Leaders await new Greece proposals
Good morning and welcome to our coverage of the continuing eurozone crisis and the latest attempts to broker a deal between Greece and its creditors.Good morning and welcome to our coverage of the continuing eurozone crisis and the latest attempts to broker a deal between Greece and its creditors.
With time running out - to quote German Chancellor Angela Merkel - Greek prime minister Alexis Tsipras is set to present new proposals following his resounding victory in Sunday’s referendum.With time running out - to quote German Chancellor Angela Merkel - Greek prime minister Alexis Tsipras is set to present new proposals following his resounding victory in Sunday’s referendum.
Finance ministers will meet later to consider what Greece has put on the table, with European leaders discussing the situation in an emergency summit this evening. Here’s Ian Traynor’s story looking at the prospects for a deal:Finance ministers will meet later to consider what Greece has put on the table, with European leaders discussing the situation in an emergency summit this evening. Here’s Ian Traynor’s story looking at the prospects for a deal:
Germany and France scrambled to avoid a major split over Greece on Monday evening as the eurozone delivered a damning verdict on Alexis Tsipras’s landslide referendum victory on Sunday and Angela Merkel demanded that the Greek prime minister put down new proposals to break the deadlock.Germany and France scrambled to avoid a major split over Greece on Monday evening as the eurozone delivered a damning verdict on Alexis Tsipras’s landslide referendum victory on Sunday and Angela Merkel demanded that the Greek prime minister put down new proposals to break the deadlock.
As concerns mount that Greek banks will run out of cash and about the damage being inflicted on the country’s economy, hopes for a breakthrough faded. EU leaders voiced despair and descended into recrimination over how to respond to Sunday’s overwhelming rejection of eurozone austerity terms as the price for keeping Greece in the currency.As concerns mount that Greek banks will run out of cash and about the damage being inflicted on the country’s economy, hopes for a breakthrough faded. EU leaders voiced despair and descended into recrimination over how to respond to Sunday’s overwhelming rejection of eurozone austerity terms as the price for keeping Greece in the currency.
Tsipras, meanwhile, moved to insure himself against purported eurozone plots to topple him and force regime change by engineering a national consensus of the country’s five mainstream parties behind his negotiating strategy, focused on securing debt relief.Tsipras, meanwhile, moved to insure himself against purported eurozone plots to topple him and force regime change by engineering a national consensus of the country’s five mainstream parties behind his negotiating strategy, focused on securing debt relief.
Full story here:Full story here:
Related: Eurozone struggles to find joint response to Greek referendumRelated: Eurozone struggles to find joint response to Greek referendum
One key participant will be new Greek finance minister Euclid Tsakalotos, appointed after the resignation of his colourful predecessor Yanis Varoufakis on Monday. Here is our profile of Tskalotos.One key participant will be new Greek finance minister Euclid Tsakalotos, appointed after the resignation of his colourful predecessor Yanis Varoufakis on Monday. Here is our profile of Tskalotos.
Meanwhile Greek banks will not reopen today after capital controls were extended until at least tomorrow. The European Central Bank put more pressure on the Greek system by tightening the rules for giving emergency funding. Michael Hewson at CMC Markets said:Meanwhile Greek banks will not reopen today after capital controls were extended until at least tomorrow. The European Central Bank put more pressure on the Greek system by tightening the rules for giving emergency funding. Michael Hewson at CMC Markets said:
[The ECB move} is likely to increase criticism that the central bank is getting involved in exerting political pressure and acting beyond its mandate of price stability, and as lender of last resort, which any credible central bank should do as a matter of course.[The ECB move} is likely to increase criticism that the central bank is getting involved in exerting political pressure and acting beyond its mandate of price stability, and as lender of last resort, which any credible central bank should do as a matter of course.
All the ECB has done is make it more likely that Greek banks will run out of money in a matter of days. Furthermore it remains highly unlikely that the Greek government will be able to make it to the next key payment deadline of 20th July when a €3.5bn bond to the ECB becomes repayable.All the ECB has done is make it more likely that Greek banks will run out of money in a matter of days. Furthermore it remains highly unlikely that the Greek government will be able to make it to the next key payment deadline of 20th July when a €3.5bn bond to the ECB becomes repayable.
While the departure of the polarising Greek finance minister Yanis Varoufakis is likely to mean that relations between the creditors and the Greek government are likely to improve, in reality the move changes nothing, particularly since attitudes in some parts of Europe appear to have hardened.While the departure of the polarising Greek finance minister Yanis Varoufakis is likely to mean that relations between the creditors and the Greek government are likely to improve, in reality the move changes nothing, particularly since attitudes in some parts of Europe appear to have hardened.
The players may have changed but the problems remain the same and while European finance ministers have agreed to meet today to consider some new Greek proposals, the likelihood is that they are unlikely to be any more acceptable now than they would have been last week, particularly given that debt relief is likely to be one of the key demands from the Greece side.The players may have changed but the problems remain the same and while European finance ministers have agreed to meet today to consider some new Greek proposals, the likelihood is that they are unlikely to be any more acceptable now than they would have been last week, particularly given that debt relief is likely to be one of the key demands from the Greece side.
This would suggest that any new agreement remains unlikely which means that Greece may well be forced to issue its own currency in a matter of days.This would suggest that any new agreement remains unlikely which means that Greece may well be forced to issue its own currency in a matter of days.
Updated at 7.52am BSTUpdated at 7.52am BST