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Greek crisis: Tusk says creditors must address debt sustainability - live updates Greek crisis: EC president Tusk calls for debt relief plan - live updates
(35 minutes later)
12.14pm BST12:14
Tusk puts pressure on Germany over Greek debts
Donald Tusk’s comments on debt sustainability could be an important development, following a double-whammy of pressure from America last night.
Yesterday, International Monetary Fund MD Christine Lagarde warned that Greece is now in “a situation of acute crisis”; reforms and a “debt restructuring” are both needed to escape it.
And US Treasury secretary Jack Lew made his clearest signal yet that America believes restructuring is inevitable.
He said:
“In the next few days what we’ll see is [whether] the parties come together and build enough trust that Greece will take the actions that it needs to take so that Europe will restructure the debt in a way that is more sustainable”
The IMF had already made his point a week ago; its new Debt Sustainability Analysis showed that Greece needs “comprehensive” debt relief, with repayments delayed for decade.
Related: IMF says Greece needs extra €60bn in funds and debt relief
The eurozone has been trying to kick this issue under the carpet for months.
Tusk’s comments suggest that the message has got home to Europe; helpful for the Greek government, but problematic for the likes of Germany.
Tusk blindsided everyone with that debt relief call, which echoes US and IMF. What on earth will Merkel make of it?
EU's Tusk follows Lagarde in saying any deal must involve 'realistic' proposal for handling Greek debt. Comments help Tsipras at home#Greece
11.50am BST11:50
The EU has just announced the timings for Sunday’s leaders’ meetings on Greece:
Sunday's #EuroSummit to start at 16.00, subsequent special meeting of the European Council to start at 18.00. #EUCO #Greece
11.40am BST11:4011.40am BST11:40
Tusk has also tweeted that Greece’s creditors must show how they would help Greece bring its debt pile down to a sustainable level:Tusk has also tweeted that Greece’s creditors must show how they would help Greece bring its debt pile down to a sustainable level:
Realistic proposal from Athens needs to be matched by realistic proposal from creditors on debt sustainability to create win-win situationRealistic proposal from Athens needs to be matched by realistic proposal from creditors on debt sustainability to create win-win situation
Updated at 11.41am BSTUpdated at 11.41am BST
11.37am BST11:3711.37am BST11:37
While I was watching Donald Tusk, the European Commission was giving its morning briefing.While I was watching Donald Tusk, the European Commission was giving its morning briefing.
And it emerged that president Juncker will meet Greek opposition parties today:And it emerged that president Juncker will meet Greek opposition parties today:
Juncker to meet Greek opposition parties today and Friday, says @MargSchinas. #grexit @JunckerEU @tsipras_euJuncker to meet Greek opposition parties today and Friday, says @MargSchinas. #grexit @JunckerEU @tsipras_eu
There are murmurings from Athens that opposition parties fear that Alexis Tsipras is either unable or unwilling to reach an agreement.There are murmurings from Athens that opposition parties fear that Alexis Tsipras is either unable or unwilling to reach an agreement.
Kathimerini explains:Kathimerini explains:
New Democracy leader Evangelos Meimarakis met with Tsipras and four other party leaders on Monday, resulting in the issuing of a joint statement. However, the conservative said on Wednesday that he refused to hold another meeting in private with Tsipras and called on him to address Parliament.New Democracy leader Evangelos Meimarakis met with Tsipras and four other party leaders on Monday, resulting in the issuing of a joint statement. However, the conservative said on Wednesday that he refused to hold another meeting in private with Tsipras and called on him to address Parliament.
Meimarakis said that he wanted Tsipras’s comments to be officially recorded, which suggests that the New Democracy chief has become suspicious of the prime minister’s motives. Meimarakis also decided to send ex-ministers Dora Bakoyannis and Costis Hatzidakis to Brussels for discussions with officials there.Meimarakis said that he wanted Tsipras’s comments to be officially recorded, which suggests that the New Democracy chief has become suspicious of the prime minister’s motives. Meimarakis also decided to send ex-ministers Dora Bakoyannis and Costis Hatzidakis to Brussels for discussions with officials there.
Former PASOK leader Evangelos Venizelos suggested that Tsipras is trying to trap the opposition parties so he can call snap elections without reaching any agreement with the institutions.Former PASOK leader Evangelos Venizelos suggested that Tsipras is trying to trap the opposition parties so he can call snap elections without reaching any agreement with the institutions.
11.20am BST11:2011.20am BST11:20
Luxembourg’s PM, Xavier Bettel, says that he will speak with Tsipras later today to push him to deliver ‘serious’ proposals.Luxembourg’s PM, Xavier Bettel, says that he will speak with Tsipras later today to push him to deliver ‘serious’ proposals.
Luxembourg's Bettel, at presser with Tusk, says he'll call Tsipras today to urge 'serious' proposalsLuxembourg's Bettel, at presser with Tusk, says he'll call Tsipras today to urge 'serious' proposals
Standing alongside Donald Tusk, Bettel also signals that patience is stretched:Standing alongside Donald Tusk, Bettel also signals that patience is stretched:
We have had months of goodwill. we now need proposals.We have had months of goodwill. we now need proposals.
Updated at 11.26am BSTUpdated at 11.26am BST
11.18am BST11:1811.18am BST11:18
Tusk: Creditors must make proposals on Greek debt sustainabilityTusk: Creditors must make proposals on Greek debt sustainability
Donald Tusk, EC president, says we have just three days to tackle the Greek crisis.Donald Tusk, EC president, says we have just three days to tackle the Greek crisis.
Speaking in Luxembourg, Tusk says that Greece remains the most pressing issue for Europe. We stand ready to do whatever is necessary to protect the stability of the euro area.Speaking in Luxembourg, Tusk says that Greece remains the most pressing issue for Europe. We stand ready to do whatever is necessary to protect the stability of the euro area.
I spoke with prime minister Alexis Tsipras today, says Tusk. And I hope that today we will receive concrete and realistic proposals from Athens.I spoke with prime minister Alexis Tsipras today, says Tusk. And I hope that today we will receive concrete and realistic proposals from Athens.
And if that happens, we will also need parallel proposal from the creditors.And if that happens, we will also need parallel proposal from the creditors.
If Greece provides a realistic proposal, then “it will need to be matched by an equally realistic proposal on debt sustainability by the creditors”.If Greece provides a realistic proposal, then “it will need to be matched by an equally realistic proposal on debt sustainability by the creditors”.
Only then will we have a win-win situation.Only then will we have a win-win situation.
Otherwise we will continue the lethargic dance that we have been dancing for the last five months.Otherwise we will continue the lethargic dance that we have been dancing for the last five months.
11.13am BST11:1311.13am BST11:13
Donald Tusk, president of the European Commission is giving a press conference with Luxembourg’s prime minister Xavier Bettel now, and discussing Greece. Donald Tusk, president of the European Council is giving a press conference with Luxembourg’s prime minister Xavier Bettel now, and discussing Greece.
It’s being streamed live here.It’s being streamed live here.
Updated at 12.19pm BST
11.11am BST11:1111.11am BST11:11
Francesco Papadia, former director general for market operations at the European Central Bank, has put his finger on the political challenges ahead:Francesco Papadia, former director general for market operations at the European Central Bank, has put his finger on the political challenges ahead:
Tsipras more than Merkel will have difficulty in having a decent agreement between #Greece and its creditors approved in Parliament.Tsipras more than Merkel will have difficulty in having a decent agreement between #Greece and its creditors approved in Parliament.
10.55am BST10:5510.55am BST10:55
Ireland’s finance minister, Michael Noonan, has an Irish radio that he believes Alexis Tsipras will manage to reach a deal to keep Greece in the eurozone.Ireland’s finance minister, Michael Noonan, has an Irish radio that he believes Alexis Tsipras will manage to reach a deal to keep Greece in the eurozone.
The odds, he says, are over 50%.The odds, he says, are over 50%.
I’m trying to get hold of the quotes - in the meantime, Twitter has the top lines:I’m trying to get hold of the quotes - in the meantime, Twitter has the top lines:
Michael Noonan believes Greece has a "better than 50 percent" chance of getting a new bailout deal. pic.twitter.com/5qqH5ANftwMichael Noonan believes Greece has a "better than 50 percent" chance of getting a new bailout deal. pic.twitter.com/5qqH5ANftw
NOONAN SAYS TSIPRAS HAS A WINDOW OF OPPORTUNITY FOR DEAL *NOONAN SAYS THINKS TSIPRAS `WILL CARRY A DEAL'NOONAN SAYS TSIPRAS HAS A WINDOW OF OPPORTUNITY FOR DEAL *NOONAN SAYS THINKS TSIPRAS `WILL CARRY A DEAL'
Noonan was also complimentary about Greece’s new finance minister, Euclid Tsakalotos, calling him “very impressive” (among other things...):Noonan was also complimentary about Greece’s new finance minister, Euclid Tsakalotos, calling him “very impressive” (among other things...):
Irish FinMin Noonan says 'seems like' #Greece working on conditionality; believes Tsipras 'will carry a deal'; 'very impressed' w TsakalòtosIrish FinMin Noonan says 'seems like' #Greece working on conditionality; believes Tsipras 'will carry a deal'; 'very impressed' w Tsakalòtos
Noonan in fine flying form on Greece....describes new fin min ``wealthy, impressive, marxist''Noonan in fine flying form on Greece....describes new fin min ``wealthy, impressive, marxist''
10.26am BST10:2610.26am BST10:26
Greece falls deeper into deflationGreece falls deeper into deflation
There’s no escape from deflation in Greece. Consumer prices fell by 2.2% annually in June, down from a 2.1% drop in May.There’s no escape from deflation in Greece. Consumer prices fell by 2.2% annually in June, down from a 2.1% drop in May.
This month’s figures will surely be even worse, given the imposition of capital controls at the end of June.This month’s figures will surely be even worse, given the imposition of capital controls at the end of June.
10.21am BST10:2110.21am BST10:21
Greece’s jobless rate has dipped, but is still at depression-era levels.Greece’s jobless rate has dipped, but is still at depression-era levels.
The seasonally adjusted unemployment rate in April 2015 was 25.6%, according to Elstat, down from 25.8% in March 2015.The seasonally adjusted unemployment rate in April 2015 was 25.6%, according to Elstat, down from 25.8% in March 2015.
10.11am BST10:1110.11am BST10:11
Europe’s stock markets are rallying this morning, partly due to hopes that the Greek government will meet tonight’s deadline.Europe’s stock markets are rallying this morning, partly due to hopes that the Greek government will meet tonight’s deadline.
The French CAC and German DAX are both up over 1%.The French CAC and German DAX are both up over 1%.
Mike van Dulken, head of research at Accendo Markets, says:Mike van Dulken, head of research at Accendo Markets, says:
Optimism is rising that Greece will deliver on promised proposals, both on time (today) and extensive enough (€12bn of reforms?), to allow creditors sign off on a third bailout for the beleaguered nation rather than its exit from the single currency.Optimism is rising that Greece will deliver on promised proposals, both on time (today) and extensive enough (€12bn of reforms?), to allow creditors sign off on a third bailout for the beleaguered nation rather than its exit from the single currency.
Traders are also reacting to the latest twists in China - shares have soared today, after days of panic plunges prompted a ban on some shares sales.Traders are also reacting to the latest twists in China - shares have soared today, after days of panic plunges prompted a ban on some shares sales.
Temporary respite or something more lasting? China stocks bounce back after days of panic selling among investors http://t.co/FudXYMP0x9Temporary respite or something more lasting? China stocks bounce back after days of panic selling among investors http://t.co/FudXYMP0x9
9.37am BST09:379.37am BST09:37
Alexis Tsipras is now meeting with his top cabinet ministers to discuss the reform plans, according to local mediaAlexis Tsipras is now meeting with his top cabinet ministers to discuss the reform plans, according to local media
Meeting of #Grece PM #Tsipras w/ Dep PM @YDragasakis, FinMIn @tsakalotos, Econ Min @g_stathakis & FM @NikosKotzias underway (via @amna_news)Meeting of #Grece PM #Tsipras w/ Dep PM @YDragasakis, FinMIn @tsakalotos, Econ Min @g_stathakis & FM @NikosKotzias underway (via @amna_news)
9.34am BST09:349.34am BST09:34
Hold the optimism.Hold the optimism.
Greece’s energy minister, the influential left-wing Panagiotis Lafazanis, has said today that he expects a deal soon - but won’t accept a new bailout programme with tough austerity.Greece’s energy minister, the influential left-wing Panagiotis Lafazanis, has said today that he expects a deal soon - but won’t accept a new bailout programme with tough austerity.
At conference in Athens, Energy Minister Lafazanis insists gov't will not sign new MoU, says #Greece has other options. #euroAt conference in Athens, Energy Minister Lafazanis insists gov't will not sign new MoU, says #Greece has other options. #euro
#Greece EnergyMIn Lafazanis: We are not going to sign an MoU, we are not Europe's hostages#Greece EnergyMIn Lafazanis: We are not going to sign an MoU, we are not Europe's hostages
A MoU, or Memorandum of Understanding, is a list of measure Greece must take in return for aid. And any third bailout would certainly include one.A MoU, or Memorandum of Understanding, is a list of measure Greece must take in return for aid. And any third bailout would certainly include one.
Lafazanis represents the radical far-left wing of the Syriza coalition, an important bloc of Tsipras’s government. Analysts have speculated that the Left Platform could potentially break away, rather than sign up to a new austerity package.Lafazanis represents the radical far-left wing of the Syriza coalition, an important bloc of Tsipras’s government. Analysts have speculated that the Left Platform could potentially break away, rather than sign up to a new austerity package.
9.23am BST09:239.23am BST09:23
Greek media are also reporting that Greece’s reform plan could include €12bn of cuts and tax rises -- several billion euros than previously expected.Greek media are also reporting that Greece’s reform plan could include €12bn of cuts and tax rises -- several billion euros than previously expected.
And that’s because of the deterioration in the Greek economy, which plunged back into recession this year.And that’s because of the deterioration in the Greek economy, which plunged back into recession this year.
Enikos has the details says:Enikos has the details says:
The report said that instead of growing by 0.5 percent this year, months of uncertainty and almost two weeks of capital controls meant “there are estimates of a recession of about 3 percent.”The report said that instead of growing by 0.5 percent this year, months of uncertainty and almost two weeks of capital controls meant “there are estimates of a recession of about 3 percent.”
“It is estimated that the measures of 8 billion euros that Greece had presented for 2015 and 2016 will have to be increased by 2 billion euros per year, raising the total to 12 billion euros for the two years,” Kathimerini reported.“It is estimated that the measures of 8 billion euros that Greece had presented for 2015 and 2016 will have to be increased by 2 billion euros per year, raising the total to 12 billion euros for the two years,” Kathimerini reported.
Tsipras called #Grereferendum for a €8-9bln austerity package, now he is gonna have to implement about €12bln #resultTsipras called #Grereferendum for a €8-9bln austerity package, now he is gonna have to implement about €12bln #result
9.17am BST09:179.17am BST09:17
Greek media report team of French experts helping Athens prepare bailout plan. So that's how Valls knew it was good! (ht @robr1)Greek media report team of French experts helping Athens prepare bailout plan. So that's how Valls knew it was good! (ht @robr1)
That’s French PM Manuel Valls, who insisted yesterday that Greece must not leave the eurozone.That’s French PM Manuel Valls, who insisted yesterday that Greece must not leave the eurozone.
8.59am BST08:598.59am BST08:59
Optimism builds in Greece as French pitch inOptimism builds in Greece as French pitch in
Helena SmithHelena Smith
Over in Athens insiders are saying that French help in drawing up the country’s new reform proposal is proving invaluable.Over in Athens insiders are saying that French help in drawing up the country’s new reform proposal is proving invaluable.
Our correspondent Helena Smith reports.Our correspondent Helena Smith reports.
Officials here are saying that all hope now rests with the French connection. Paris has dispatched a team of technocrats to help finance minister Euclid Tsakalotos draft the new proposal in an effort to ensure it is as convincing as can possibly be.Officials here are saying that all hope now rests with the French connection. Paris has dispatched a team of technocrats to help finance minister Euclid Tsakalotos draft the new proposal in an effort to ensure it is as convincing as can possibly be.
One insider says:One insider says:
“It is being done all over again, measure by measure. They are offering invaluable assistance.”“It is being done all over again, measure by measure. They are offering invaluable assistance.”
Tsakalotos, who returned to Athens last night, will convene with prime minister Alexis Tsipras and other senior officials to discuss the new measures – a mix of biting taxes, swingeing cuts and administrative reforms.Tsakalotos, who returned to Athens last night, will convene with prime minister Alexis Tsipras and other senior officials to discuss the new measures – a mix of biting taxes, swingeing cuts and administrative reforms.
At this point in time, the third bailout will allegedly be in the range of €52bn with Greece asking for the emergency aid to be disbursed over three years. The media here is also reporting that the IMF is pressing for the package to be higher, in the range of €60-€70bn.At this point in time, the third bailout will allegedly be in the range of €52bn with Greece asking for the emergency aid to be disbursed over three years. The media here is also reporting that the IMF is pressing for the package to be higher, in the range of €60-€70bn.
Events have happened so fast, that Greeks have almost not had the opportunity to digest the news that after nearly six months of drama-filled negotiations they could soon be hit with a heavier austerity package than at any other time.Events have happened so fast, that Greeks have almost not had the opportunity to digest the news that after nearly six months of drama-filled negotiations they could soon be hit with a heavier austerity package than at any other time.
But for the first time in several days there is hope that a way can be found out.But for the first time in several days there is hope that a way can be found out.
I spoke with Greece’s pre-eminent sociologist, professor Konstantinos Tsoukalas, who also sits as a state MP with the governing Syriza party this morning, and he said:I spoke with Greece’s pre-eminent sociologist, professor Konstantinos Tsoukalas, who also sits as a state MP with the governing Syriza party this morning, and he said:
“I am very optimistic for the first time in days.”“I am very optimistic for the first time in days.”
Updated at 9.37am BSTUpdated at 9.37am BST
8.49am BST08:498.49am BST08:49
Greek pensioners have been queuing at bank branches today, to receive the maximum €120 they are entitled to under capital controls.Greek pensioners have been queuing at bank branches today, to receive the maximum €120 they are entitled to under capital controls.
8.45am BST08:458.45am BST08:45
#Greece FinMin Tsakalòtos back in Athens. To meet with PM Tsipras this am to finalize Greek prior actions proposal to the #Eurogroup.#Greece FinMin Tsakalòtos back in Athens. To meet with PM Tsipras this am to finalize Greek prior actions proposal to the #Eurogroup.
8.22am BST08:228.22am BST08:22
There’s no hope of buying or selling shares in Greek companies this week; it’s just been announced that the stock market will remain closed until at least Monday night.There’s no hope of buying or selling shares in Greek companies this week; it’s just been announced that the stock market will remain closed until at least Monday night.
***Greece's capital markets commission says stock exchange will remain closed until July 13 inclusive - RTRS***Greece's capital markets commission says stock exchange will remain closed until July 13 inclusive - RTRS
8.19am BST08:198.19am BST08:19
Draghi on Greece: this time it's really difficultDraghi on Greece: this time it's really difficult
Mario Draghi, one of the crucial players in this drama, has warned that resolving the Greece crisis will be very tough.Mario Draghi, one of the crucial players in this drama, has warned that resolving the Greece crisis will be very tough.
That’s according to Italian financial daily Il Sole 24 Ore today.That’s according to Italian financial daily Il Sole 24 Ore today.
It reports that Draghi was asked about the prospect of a Greek deal when on a flight from Brussels to Rome yesterday, and replied:It reports that Draghi was asked about the prospect of a Greek deal when on a flight from Brussels to Rome yesterday, and replied:
“I don’t know, this time it’s really difficult.”“I don’t know, this time it’s really difficult.”
Question to Draghi: "Will you manage to close the #Greece dossier?" Answer: "I don't know. This time it's really difficult". (@sole24ore)Question to Draghi: "Will you manage to close the #Greece dossier?" Answer: "I don't know. This time it's really difficult". (@sole24ore)
Draghi also downplayed the prospect of Russian President Vladimir Putin stepping in, saying:Draghi also downplayed the prospect of Russian President Vladimir Putin stepping in, saying:
“I don’t see it as a real risk ... and then, they don’t have money themselves.”“I don’t see it as a real risk ... and then, they don’t have money themselves.”
(thanks to Reuters for the translation)(thanks to Reuters for the translation)
Updated at 8.43am BSTUpdated at 8.43am BST
8.03am BST08:038.03am BST08:03
Introduction: Greece must produce plan todayIntroduction: Greece must produce plan today
Good morning, and welcome to our rolling coverage of the Greek debt crisis.Good morning, and welcome to our rolling coverage of the Greek debt crisis.
“I love deadlines. I love the whooshing noise they make as they go by.”“I love deadlines. I love the whooshing noise they make as they go by.”
With that attitude, Douglas Adams would certainly have enjoyed the eurozone crisis. But Greece now faces one of those deadlines that one really can’t miss.With that attitude, Douglas Adams would certainly have enjoyed the eurozone crisis. But Greece now faces one of those deadlines that one really can’t miss.
Alexis Tsipras’s government must draw up and deliver a credible economic plan to its creditors by the end of the day, to have any chance of securing the third bailout plan it requested on Wednesday.Alexis Tsipras’s government must draw up and deliver a credible economic plan to its creditors by the end of the day, to have any chance of securing the third bailout plan it requested on Wednesday.
Tsipras, back in Athens after his bruising trip to the European Parliament, will meet with his cabinet today to discuss the details.Tsipras, back in Athens after his bruising trip to the European Parliament, will meet with his cabinet today to discuss the details.
That could be a tense affair; sections of his Syriza party will surely battle against the imposition of fresh austerity measures, especially after last Sunday’s referendum.That could be a tense affair; sections of his Syriza party will surely battle against the imposition of fresh austerity measures, especially after last Sunday’s referendum.
But if the cabinet can stay united, finance minister Euclid Tsakalotos will draw up the details and send them winging to creditors. Germany expects them by midnight Thursday (although EC president Jean-Claude Juncker has suggested the finally final deadline is 8.30am Friday morning #whoosh).But if the cabinet can stay united, finance minister Euclid Tsakalotos will draw up the details and send them winging to creditors. Germany expects them by midnight Thursday (although EC president Jean-Claude Juncker has suggested the finally final deadline is 8.30am Friday morning #whoosh).
The pressure on both sides to reach a deal is hitting new heights. Yesterday, the IMF and the US Treasury urged Athens and its lenders to reach a deal, and warned that Greece must be given debt relief.The pressure on both sides to reach a deal is hitting new heights. Yesterday, the IMF and the US Treasury urged Athens and its lenders to reach a deal, and warned that Greece must be given debt relief.
Government spokesman Gabriel Sakellaridis has already been on TV today to insist that agreement can be reached.Government spokesman Gabriel Sakellaridis has already been on TV today to insist that agreement can be reached.
Sakellaridis told Antenna TV this morning that:Sakellaridis told Antenna TV this morning that:
“I am certain the agreement will pass Syriza’s parliamentary group, [and] the governing coalition.“I am certain the agreement will pass Syriza’s parliamentary group, [and] the governing coalition.
The government is doing everything it can to reach an immediate deal and end this cycle of uncertainty.”The government is doing everything it can to reach an immediate deal and end this cycle of uncertainty.”
That certainty will be tested today, as we rattle towards a weekend of drama that could surpass anything seen in the last five years of the eurozone crisis.That certainty will be tested today, as we rattle towards a weekend of drama that could surpass anything seen in the last five years of the eurozone crisis.
If an acceptable plan isn’t drawn up in time, Sunday’s EU leaders summit will be about handling the fallout of Greece’s departure from the eurozone.If an acceptable plan isn’t drawn up in time, Sunday’s EU leaders summit will be about handling the fallout of Greece’s departure from the eurozone.
We’ll be tracking all the main events though the day....We’ll be tracking all the main events though the day....
Updated at 8.05am BSTUpdated at 8.05am BST