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Greek debt crisis: ECB and Eurogroup consider next steps after yes vote - live Greek debt crisis: ECB and Eurogroup consider next steps after yes vote - live
(35 minutes later)
11.44am BST11:44
The European Commission says it takes the Greek vote as a positive signal, and believes a compromise on a bridging loan for Greece is within reach.
It added that short term funds could be disbursed rapidly, reports Reuters.
Updated at 11.44am BST
11.43am BST11:43
The Eurogroup call has finished and more news is expected later today, according to its spokesman:
Call #Eurogroup has finished. More on the outcome early afternoon #Greece
11.40am BST11:40
Despite concerns from EU ministers about Greece’s ability to implement the proposed reforms - Finland’s Alexander Stubb for one - the EU reportedly believes that the vote last night satisfies the bailout terms:
#BREAKING Greek parliament vote satisfies bailout deal terms: EU official
European Commission-Institutions Assess Greece Has Legally Implemented 4 Key Measures Agreed At Summit. (DJ)
Updated at 11.53am BST
11.28am BST11:28
Austrian finance minister Hans Jörg Schelling has said he has heard from sources at the European Central Bank that the emergency liquidity assistance for Greece will be extended, Reuters is reporting.
Schelling also said he expects an agreement on a bridging loan for Greece to be reached by late afternoon tomorrow.
11.20am BST11:2011.20am BST11:20
And here’s the ECB (central bank) and ECB (cricket) confusion, as tweeted by the ECB’s head of media:And here’s the ECB (central bank) and ECB (cricket) confusion, as tweeted by the ECB’s head of media:
A typical morning on the @ecb mentions thread. (Not sure anyone every tweets monetary policy to @ECB_cricket) pic.twitter.com/cWXoEuXzLJA typical morning on the @ecb mentions thread. (Not sure anyone every tweets monetary policy to @ECB_cricket) pic.twitter.com/cWXoEuXzLJ
11.17am BST11:1711.17am BST11:17
That leaves the German and Austrian parliaments to vote tomorrow.That leaves the German and Austrian parliaments to vote tomorrow.
Meanwhile the European Stability Mechanism council will have a conference call tomorrow to decide whether to begin negotiations about a third Greek bailout:Meanwhile the European Stability Mechanism council will have a conference call tomorrow to decide whether to begin negotiations about a third Greek bailout:
ESM governing council will have teleconf tomorrow at 4pm BXL time to make formal decision to start negotiations. #GreeceESM governing council will have teleconf tomorrow at 4pm BXL time to make formal decision to start negotiations. #Greece
11.16am BST11:1611.16am BST11:16
Finland approves Greek bailout talksFinland approves Greek bailout talks
Finland has given its approval to start negotiations for a new bailout programme for Greece and for talks on bridging finance.Finland has given its approval to start negotiations for a new bailout programme for Greece and for talks on bridging finance.
The Grand Committee, which acts on behalf of the country’s MPs, voted in favour of the request for talks (a day earlier than we had expected.)The Grand Committee, which acts on behalf of the country’s MPs, voted in favour of the request for talks (a day earlier than we had expected.)
Finance minister Alexander Stubb said Finland would not accept a haircut on Greek debt, but was open to other options.Finance minister Alexander Stubb said Finland would not accept a haircut on Greek debt, but was open to other options.
He also said he was concerned about Greece implementing the reforms, given prime minister Alexis Tsipras said last night he did not believe in them.He also said he was concerned about Greece implementing the reforms, given prime minister Alexis Tsipras said last night he did not believe in them.
#Finland parliament approuves #greekment . FinMin refusing possibility of haircut but open to discuss other options. https://t.co/M0eHFfmttZ#Finland parliament approuves #greekment . FinMin refusing possibility of haircut but open to discuss other options. https://t.co/M0eHFfmttZ
Stubb: Today we have mandate from FI parliament for bridge financing and begin of negotiations of 3rd bailout. #GreeceStubb: Today we have mandate from FI parliament for bridge financing and begin of negotiations of 3rd bailout. #Greece
Stubb: Finland won't accept haircut. Some other form of debt restructuring might be discussed. #GreeceStubb: Finland won't accept haircut. Some other form of debt restructuring might be discussed. #Greece
Stubb: Though hard to see much space for further debt relief since already maturities very long and interest rates low. #GreeceStubb: Though hard to see much space for further debt relief since already maturities very long and interest rates low. #Greece
Stubb: I'm a bit worried after Greek PM last night said he doesn't believe in this programme. #GreeceStubb: I'm a bit worried after Greek PM last night said he doesn't believe in this programme. #Greece
Stubb: Clear that in order to conclude ESM prog talks Greek gov't must fully commit to its implementation. We have to be able to trust them.Stubb: Clear that in order to conclude ESM prog talks Greek gov't must fully commit to its implementation. We have to be able to trust them.
Updated at 11.16am BSTUpdated at 11.16am BST
11.06am BST11:0611.06am BST11:06
New Forsa/Stern poll of German voters: - 55%: Merkel right to try keep #Greece in; - 31%: #Grexit should've been forced; - 14%: undecided.New Forsa/Stern poll of German voters: - 55%: Merkel right to try keep #Greece in; - 31%: #Grexit should've been forced; - 14%: undecided.
10.59am BST10:5910.59am BST10:59
Secondly, film of violence that broke out at last night’s protests:Secondly, film of violence that broke out at last night’s protests:
10.58am BST10:5810.58am BST10:58
Meanwhile here are a couple of videos from last night.Meanwhile here are a couple of videos from last night.
First the Greek parliament passing the bailout deal:First the Greek parliament passing the bailout deal:
10.53am BST10:5310.53am BST10:53
Bridging loan agreed in principle - BloombergBridging loan agreed in principle - Bloomberg
The €7bn bridging loan for Greece has been agreed in principle and could be announced tomorrow, Bloomberg is reporting:The €7bn bridging loan for Greece has been agreed in principle and could be announced tomorrow, Bloomberg is reporting:
Euro Area said to agree in principle to €7bn #Greece bridge loan. Eurozone bridge loan to Greece would be announced tomorrow, BBG reports.Euro Area said to agree in principle to €7bn #Greece bridge loan. Eurozone bridge loan to Greece would be announced tomorrow, BBG reports.
Updated at 10.54am BSTUpdated at 10.54am BST
10.45am BST10:4510.45am BST10:45
After Germany’s Wolfgang Schäuble raised the prospect once more of Greece leaving the eurozone temporarily, Greek deputy prime minister Yannis Dragasakis has dismissed the idea.After Germany’s Wolfgang Schäuble raised the prospect once more of Greece leaving the eurozone temporarily, Greek deputy prime minister Yannis Dragasakis has dismissed the idea.
In a Facebook post he said Schäuble was offering the carrot of a temporary exit to relieve the debt burden, with the stick of the threat of bankruptcy. But he said there were ways within the existing framework to allieviate the debt burden (debt relief along the lines suggested by the IMF perhaps, with a 30 year grace period).In a Facebook post he said Schäuble was offering the carrot of a temporary exit to relieve the debt burden, with the stick of the threat of bankruptcy. But he said there were ways within the existing framework to allieviate the debt burden (debt relief along the lines suggested by the IMF perhaps, with a 30 year grace period).
#Greece DepPM @YDragasakis reacts to #Germany FinMin Schäuble @DLF interview: 'No timeout. Reprofiling in the #euro' https://t.co/ivINWUduxL#Greece DepPM @YDragasakis reacts to #Germany FinMin Schäuble @DLF interview: 'No timeout. Reprofiling in the #euro' https://t.co/ivINWUduxL
Here is his conclusion, translated:Here is his conclusion, translated:
Within the current framework there are technical capabilities that could alleviate the Greek economy and society from the excessive burden of debt, putting it on a sustainable path. These, with persistence and rigor, we try to make the most of defending the long term interests of Greece and of Europe.Within the current framework there are technical capabilities that could alleviate the Greek economy and society from the excessive burden of debt, putting it on a sustainable path. These, with persistence and rigor, we try to make the most of defending the long term interests of Greece and of Europe.
10.28am BST10:2810.28am BST10:28
The Greek reshuffle may not happen today after all, it seems:The Greek reshuffle may not happen today after all, it seems:
#Greece cabinet reshuffling may be delayed until Friday (via @capitalgr) #politics#Greece cabinet reshuffling may be delayed until Friday (via @capitalgr) #politics
10.12am BST10:1210.12am BST10:12
More from the radio interview earlier with German finance minister Wolfgang Schäuble.More from the radio interview earlier with German finance minister Wolfgang Schäuble.
Reuters reports:Reuters reports:
[Schäuble] questioned whether Greece will ever get a third bailout programme on Thursday, a day after the Greek parliament passed a package of stringent measures required to open negotiations on financial aid.[Schäuble] questioned whether Greece will ever get a third bailout programme on Thursday, a day after the Greek parliament passed a package of stringent measures required to open negotiations on financial aid.
He said he would submit a request to Germany’s parliament to vote on opening the talks and said passing the reforms was an “important step”, but it would be hard to make Greece’s debt sustainable without writing some of it off, an idea Berlin considers to be illegal.He said he would submit a request to Germany’s parliament to vote on opening the talks and said passing the reforms was an “important step”, but it would be hard to make Greece’s debt sustainable without writing some of it off, an idea Berlin considers to be illegal.
“We will now see in the negotiations whether there is even a way to get to a new programme taking into account (Greece’s) financing needs, which have risen incredibly,” he told Deutschlandfunk radio on Thursday.“We will now see in the negotiations whether there is even a way to get to a new programme taking into account (Greece’s) financing needs, which have risen incredibly,” he told Deutschlandfunk radio on Thursday.
10.07am BST10:0710.07am BST10:07
Finland has to vote on the Greek bailout deal, and could prove tricky to get a mandate for a deal as our Europe editor Ian Traynor explained earlier in the week:Finland has to vote on the Greek bailout deal, and could prove tricky to get a mandate for a deal as our Europe editor Ian Traynor explained earlier in the week:
Related: Could Finland stand in the way of Greece bailout deal?Related: Could Finland stand in the way of Greece bailout deal?
And now:And now:
*FINLAND TO DEMAND GENUINE GREEK COMMITMENT TO REFORM, PM SAYS*FINLAND TO DEMAND GENUINE GREEK COMMITMENT TO REFORM, PM SAYS
FIN PM Sipilä: Biggest concern is Greek government's lack of ownership over programme. It needs to strengthen during actual debt talks.FIN PM Sipilä: Biggest concern is Greek government's lack of ownership over programme. It needs to strengthen during actual debt talks.
Finland, Austria and Germany all vote on Friday.Finland, Austria and Germany all vote on Friday.
Updated at 10.37am BSTUpdated at 10.37am BST
10.04am BST10:0410.04am BST10:04
Meanwhile the Greek bank holiday has been extended until 17 July, according to Greek news agency ANA-MPA, which is hardly a surprise. The banks cannot reopen without further support from the European Central Bank.Meanwhile the Greek bank holiday has been extended until 17 July, according to Greek news agency ANA-MPA, which is hardly a surprise. The banks cannot reopen without further support from the European Central Bank.
9.57am BST09:579.57am BST09:57
ECB to leave emergency assistance unchanged - reportsECB to leave emergency assistance unchanged - reports
Here’s some bits of speculation about the European Central Bank and its emergency liquidity assistance for Greek banks:Here’s some bits of speculation about the European Central Bank and its emergency liquidity assistance for Greek banks:
Sources suggest #ECB has not yet decided on #Greece ELA, but #Greece requesting increase of €1.5bn (@RANsquawk)Sources suggest #ECB has not yet decided on #Greece ELA, but #Greece requesting increase of €1.5bn (@RANsquawk)
#ECB said to favour maintaining #Greece ELA unchanged ~BBG#ECB said to favour maintaining #Greece ELA unchanged ~BBG
Sources: #Ecb likely to keep #Ela unchanged today and to rise it once Esm negotiation will start and bridge loan will be agreed #GreeceSources: #Ecb likely to keep #Ela unchanged today and to rise it once Esm negotiation will start and bridge loan will be agreed #Greece
The ECB is currently meeting and will give a press conference later.The ECB is currently meeting and will give a press conference later.
Updated at 10.18am BSTUpdated at 10.18am BST
9.51am BST09:519.51am BST09:51
After meeting ECB president Mario Draghi yesterday, US Treasury Secretary Jack Lew has been in talks today with German finance minister Wolfgang Schäuble.After meeting ECB president Mario Draghi yesterday, US Treasury Secretary Jack Lew has been in talks today with German finance minister Wolfgang Schäuble.
#Germany FinMin Schäuble and US Tsy Sec Lew meet in Berlin pic.twitter.com/1ebz4Ijl2n /via @BMF_Bund#Germany FinMin Schäuble and US Tsy Sec Lew meet in Berlin pic.twitter.com/1ebz4Ijl2n /via @BMF_Bund
Perhaps they were discussing swapping Greece for Puerto Rico. Last week Schäuble said in Frankfurt:Perhaps they were discussing swapping Greece for Puerto Rico. Last week Schäuble said in Frankfurt:
I offered to my friend Jack Lew that we would take Puerto Rico into the eurozone, if the USA took Greece into the dollar union. He thought I was joking.I offered to my friend Jack Lew that we would take Puerto Rico into the eurozone, if the USA took Greece into the dollar union. He thought I was joking.
Updated at 9.52am BSTUpdated at 9.52am BST
9.39am BST09:399.39am BST09:39
The chairman of Germany’s CSU Horst Seehofer has welcomed the Greek vote to begin negotiations and said it was a sign of trust building. He called on his party to back the deal in the German parliament tomorrow. He told the Süddeutsche Zeitung:The chairman of Germany’s CSU Horst Seehofer has welcomed the Greek vote to begin negotiations and said it was a sign of trust building. He called on his party to back the deal in the German parliament tomorrow. He told the Süddeutsche Zeitung:
This is the beginning of a trust building, which is urgently needed after the last few weeks and months.This is the beginning of a trust building, which is urgently needed after the last few weeks and months.
I strongly recommend that the friends of my party and our group formally agree to start negotiations.I strongly recommend that the friends of my party and our group formally agree to start negotiations.
Full story here (in German).Full story here (in German).
9.22am BST09:229.22am BST09:22
In the middle of the financial crisis, Greeks have been buying big ticket electrical items such as large screen TVs, writes Shane Hickey.In the middle of the financial crisis, Greeks have been buying big ticket electrical items such as large screen TVs, writes Shane Hickey.
That is according to Dixons Carphone, whose Kotsovolos arm in Greece returned to profitability during the year. But the company said:That is according to Dixons Carphone, whose Kotsovolos arm in Greece returned to profitability during the year. But the company said:
We do however remain very mindful of the uncertain economic and political situation in the country and the effect this may have on our business.We do however remain very mindful of the uncertain economic and political situation in the country and the effect this may have on our business.
Dixons Carphone results factlet: large screen TVs sold especially well in Greece. Everyone keeping an eye on Syntagma Square..?Dixons Carphone results factlet: large screen TVs sold especially well in Greece. Everyone keeping an eye on Syntagma Square..?
Updated at 9.28am BSTUpdated at 9.28am BST
9.15am BST09:159.15am BST09:15
And here are his concerns, and they revolve around our old friend “implementation”:And here are his concerns, and they revolve around our old friend “implementation”:
The real trouble and challenges may come later. No majority, no ownership could dent implementation of measures & reforms #Greece #eurozoneThe real trouble and challenges may come later. No majority, no ownership could dent implementation of measures & reforms #Greece #eurozone
9.03am BST09:039.03am BST09:03
Greek vote was the easy part - Slovak finance ministerGreek vote was the easy part - Slovak finance minister
And here comes the man who blamed the Greek situation on “Syriza Spring” to welcome last night’s vote, in a rather downbeat way. Slovak finance minister Peter Kazimir tweets:And here comes the man who blamed the Greek situation on “Syriza Spring” to welcome last night’s vote, in a rather downbeat way. Slovak finance minister Peter Kazimir tweets:
I welcome the positive vote of the Greek parliament, but this is the easier part of the deal #Greece #eurozone #ECB #IMFI welcome the positive vote of the Greek parliament, but this is the easier part of the deal #Greece #eurozone #ECB #IMF
Updated at 9.05am BSTUpdated at 9.05am BST
8.54am BST08:548.54am BST08:54
More from the ESM’s Klaus Regling on German radio, who said the emergency fund would provide around €50bn to the Greek bailout:More from the ESM’s Klaus Regling on German radio, who said the emergency fund would provide around €50bn to the Greek bailout:
Regling tells @ardmoma that ESM will provide about €50bn for #Greece's €85bn 3rd bailout.Regling tells @ardmoma that ESM will provide about €50bn for #Greece's €85bn 3rd bailout.
Regling to @ardmoma: Eurosummit made clear that it 'is up to €85bn - not at least €85bn' for #Greece in 3rd programme.Regling to @ardmoma: Eurosummit made clear that it 'is up to €85bn - not at least €85bn' for #Greece in 3rd programme.
Updated at 8.57am BSTUpdated at 8.57am BST
8.35am BST08:358.35am BST08:35
European markets have opened higher after the Greek vote which opens the way for negotiations over a third bailout:European markets have opened higher after the Greek vote which opens the way for negotiations over a third bailout:
Updated at 8.36am BSTUpdated at 8.36am BST
8.24am BST08:248.24am BST08:24
Jennifer RankinJennifer Rankin
Is the eurozone about to give Greece a break on debt relief?Is the eurozone about to give Greece a break on debt relief?
Christine Lagarde, the director of the International Monetary Fund, hinted as much when she said Greece’s creditors were moving closer to easing the burden of Greece’s debt.Christine Lagarde, the director of the International Monetary Fund, hinted as much when she said Greece’s creditors were moving closer to easing the burden of Greece’s debt.
“I have some hope because I understand as late as a couple of hours ago there were some more positive noises to that principle of debt restructuring,” she told CNN in an interview on Wednesday.“I have some hope because I understand as late as a couple of hours ago there were some more positive noises to that principle of debt restructuring,” she told CNN in an interview on Wednesday.
“One way has to be found in order to release that burden and allow that country to demonstrate, yes, it can be back on a sustainable path.”“One way has to be found in order to release that burden and allow that country to demonstrate, yes, it can be back on a sustainable path.”
She laid out several ways Greece’s creditors could lessen the debt burden: giving Greece more time to pay back debt, extending the holiday on repayments, reducing interest rates or writing off a portion of the total - a haircut.She laid out several ways Greece’s creditors could lessen the debt burden: giving Greece more time to pay back debt, extending the holiday on repayments, reducing interest rates or writing off a portion of the total - a haircut.
But she made clear the latter is not acceptable to eurozone governments.But she made clear the latter is not acceptable to eurozone governments.
“Haircuts are not on the cards, not in these member states.”“Haircuts are not on the cards, not in these member states.”
The IMF thinks Athens should receive a 30-year grace period before it has to start paying off its debts. The fund made this recommendation in a devastating analysis on Greece’s debts that ripped apart the idea the current bailout plan could work without much more generous debt relief.The IMF thinks Athens should receive a 30-year grace period before it has to start paying off its debts. The fund made this recommendation in a devastating analysis on Greece’s debts that ripped apart the idea the current bailout plan could work without much more generous debt relief.
While the IMF report is comfort to Syriza, it is clear the fund are not exactly fans of Greece’s leftist government.While the IMF report is comfort to Syriza, it is clear the fund are not exactly fans of Greece’s leftist government.
Lagarde is convinced Greece was “on the path to sustainability” eighteen months ago. She blames the Syriza-led government for reversing austerity measures, as well as backsliding on reform promises under the previous government - led by Antonis Samaras of the centre-right New Democracy party.Lagarde is convinced Greece was “on the path to sustainability” eighteen months ago. She blames the Syriza-led government for reversing austerity measures, as well as backsliding on reform promises under the previous government - led by Antonis Samaras of the centre-right New Democracy party.
Despite the critical tone, the fund’s intervention is likely to help Greece in the extremely difficult negotiations on the small print of the €86bn bailout that will take place over the next month.Despite the critical tone, the fund’s intervention is likely to help Greece in the extremely difficult negotiations on the small print of the €86bn bailout that will take place over the next month.
Lagarde made clear she saw two parts to those talks: more reforms from the Greek government and “a significant debt restructuring that will actually keep everything together and put the country back on a sustainable track.” It is yet another reminder that the Greek debt crisis is far from over.Lagarde made clear she saw two parts to those talks: more reforms from the Greek government and “a significant debt restructuring that will actually keep everything together and put the country back on a sustainable track.” It is yet another reminder that the Greek debt crisis is far from over.
8.04am BST08:048.04am BST08:04
Temporary Grexit still a good option - SchäubleTemporary Grexit still a good option - Schäuble
Ahead of the vote on the bailout tomorrow in the German parliament, the country’s finance minister Wolfgang Schäuble is still persisting with his suggestion of a temporary exit from the eurozone by Greece. Reuters reports:Ahead of the vote on the bailout tomorrow in the German parliament, the country’s finance minister Wolfgang Schäuble is still persisting with his suggestion of a temporary exit from the eurozone by Greece. Reuters reports:
Schäuble said he would submit a request to Germany’s parliament to reopen negotiations on Greece’s third bailout with “full conviction”, but still believes a temporary Grexit would perhaps be a better option.Schäuble said he would submit a request to Germany’s parliament to reopen negotiations on Greece’s third bailout with “full conviction”, but still believes a temporary Grexit would perhaps be a better option.
“We are a step further,” Schaeuble told Germany’s Deutschlandfunk radio on Thursday, after the Greek parliament passed a sweeping package of austerity measures demanded by European partners.“We are a step further,” Schaeuble told Germany’s Deutschlandfunk radio on Thursday, after the Greek parliament passed a sweeping package of austerity measures demanded by European partners.
“This is an important step,” he said.“This is an important step,” he said.
He added, however, that many economists doubt that Greece’s problems can be solved without a debt haircut.He added, however, that many economists doubt that Greece’s problems can be solved without a debt haircut.
He said a haircut would be incompatible with a country’s membership of the euro, meaning that a country would therefore have to leave the currency union temporarily.He said a haircut would be incompatible with a country’s membership of the euro, meaning that a country would therefore have to leave the currency union temporarily.
“But this would perhaps be the better way for Greece,” Schaeuble said.“But this would perhaps be the better way for Greece,” Schaeuble said.
Updated at 8.07am BSTUpdated at 8.07am BST
7.58am BST07:587.58am BST07:58
Yields for Spanish, Portuguese and Italian bonds have dipped after the Greek vote, with investors showing some cautious optimism for the outlook. They fell up to 4 basis points to around six-week lows.Yields for Spanish, Portuguese and Italian bonds have dipped after the Greek vote, with investors showing some cautious optimism for the outlook. They fell up to 4 basis points to around six-week lows.
7.52am BST07:527.52am BST07:52
Greek bank collapse could threaten whole eurozone - ESMGreek bank collapse could threaten whole eurozone - ESM
Well it comes under the category of stating the obvious, but the head of the European Stability Mechanism has warned Greek banks could collapse without a third bailout.Well it comes under the category of stating the obvious, but the head of the European Stability Mechanism has warned Greek banks could collapse without a third bailout.
Klaus Regling, head of the agency which gives financial support to eurozone countries, told German broadcaster ARD:Klaus Regling, head of the agency which gives financial support to eurozone countries, told German broadcaster ARD:
If everything should fail, then the Greek banking system would collapse. If the four biggest systemically relevant banks in a country no longer work, this has grave consequences not just for Greece... but also for the whole eurozone.If everything should fail, then the Greek banking system would collapse. If the four biggest systemically relevant banks in a country no longer work, this has grave consequences not just for Greece... but also for the whole eurozone.
Quotes courtesy Reuters.Quotes courtesy Reuters.
Updated at 7.53am BSTUpdated at 7.53am BST
7.42am BST07:427.42am BST07:42
Asian markets edged higher after the news of the Greek vote, and European markets are expected to open in positive territory ahead of the ECB meeting:Asian markets edged higher after the news of the Greek vote, and European markets are expected to open in positive territory ahead of the ECB meeting:
Our European opening calls: $FTSE 6788 up 34 $DAX 11651 up 112 $CAC 5091 up 44 $IBEX 11419 up 84 $MIB 23601 up 208Our European opening calls: $FTSE 6788 up 34 $DAX 11651 up 112 $CAC 5091 up 44 $IBEX 11419 up 84 $MIB 23601 up 208
Jasper Lawler, market analyst at CMC Markets UK, said:Jasper Lawler, market analyst at CMC Markets UK, said:
European stocks are expected to rejoice higher at the market open on Thursday after parliamentary approval overnight in Athens makes the Greek bailout deal as good as done. A bridge financing arrangement to allow Greece to meet its July 20 payment to the ECB using European Union funds is also nearly in place after agreeing protection for non-Eurozone countries such as Britain.European stocks are expected to rejoice higher at the market open on Thursday after parliamentary approval overnight in Athens makes the Greek bailout deal as good as done. A bridge financing arrangement to allow Greece to meet its July 20 payment to the ECB using European Union funds is also nearly in place after agreeing protection for non-Eurozone countries such as Britain.
The 10,000 protestors outside parliament in Athens and the resignation of the deputy finance minister suggest the next risk for Greece’s stability is political. PM Tsipras will try a cabinet reshuffle but if that fails to sure up confidence in Syriza, a worst case scenario would be snap elections.The 10,000 protestors outside parliament in Athens and the resignation of the deputy finance minister suggest the next risk for Greece’s stability is political. PM Tsipras will try a cabinet reshuffle but if that fails to sure up confidence in Syriza, a worst case scenario would be snap elections.
7.41am BST07:417.41am BST07:41
Introduction: Greece moves closer to third bailout after voteIntroduction: Greece moves closer to third bailout after vote
Good morning and welcome to our rolling coverage of the Greek financial crisis.Good morning and welcome to our rolling coverage of the Greek financial crisis.
So, if this week’s deal between Greece and its creditors was a Pyrrhic victory for Alexis Tsipras - given the bailout terms were worse than the previous offer - what then of last night’s vote?So, if this week’s deal between Greece and its creditors was a Pyrrhic victory for Alexis Tsipras - given the bailout terms were worse than the previous offer - what then of last night’s vote?
The Greek prime minister succeeded in pushing the contentious measures through the Greek parliament last night, but the cost was high. In the 229 lawmakers voted in favour, 64 against and there were six abstentions.The Greek prime minister succeeded in pushing the contentious measures through the Greek parliament last night, but the cost was high. In the 229 lawmakers voted in favour, 64 against and there were six abstentions.
But 40 of Tsipras’s Syriza party rejected the new terms, casting doubt on his authority and almost certain to lead to a reshuffle this morning, if not snap elections at a later point. One of them was former finance minister Yanis Varoufakis, hardly a surprise he wrote after a scathing attack on the deal in a blogpost.But 40 of Tsipras’s Syriza party rejected the new terms, casting doubt on his authority and almost certain to lead to a reshuffle this morning, if not snap elections at a later point. One of them was former finance minister Yanis Varoufakis, hardly a surprise he wrote after a scathing attack on the deal in a blogpost.
At the same time there were scenes of violence on the streets of Athens for the first time this year, as riot police fired teargas and fought running battles with anti-austerity protesters armed with molotov cocktails.At the same time there were scenes of violence on the streets of Athens for the first time this year, as riot police fired teargas and fought running battles with anti-austerity protesters armed with molotov cocktails.
Here’s our story wrapping up the night’s events:Here’s our story wrapping up the night’s events:
Related: EU ministers begin drive to deliver bailout as Greece gives bitter consentRelated: EU ministers begin drive to deliver bailout as Greece gives bitter consent
Meanwhile there are still hurdles to overcome, with the German parliament set to vote on the deal on Friday and EU officials scrambling to put together a €7bn bridging loan to tide Greece through the next few weeks. Despite some resistance - including from the UK - it appears the EFSM stability mechanism will be used for the arrangement. Non-eurozone countries had wanted guarantees they would be protected if Greece did not repay the loans.Meanwhile there are still hurdles to overcome, with the German parliament set to vote on the deal on Friday and EU officials scrambling to put together a €7bn bridging loan to tide Greece through the next few weeks. Despite some resistance - including from the UK - it appears the EFSM stability mechanism will be used for the arrangement. Non-eurozone countries had wanted guarantees they would be protected if Greece did not repay the loans.
The Eurogroup of finance ministers is due to hold a conference call to discuss the situation at 8.00 GMT (9.00 BST), as tweeted by its spokesman last night:The Eurogroup of finance ministers is due to hold a conference call to discuss the situation at 8.00 GMT (9.00 BST), as tweeted by its spokesman last night:
Confirmation just went out: #Eurogroup teleconference tomorrow 10 AM #GreeceConfirmation just went out: #Eurogroup teleconference tomorrow 10 AM #Greece
There are also some doubts as to whether the bailout package will actually do the job intended, with little prospect of the Greek economy recovering using severe austerity measures without some form of debt relief and a plan for growth.There are also some doubts as to whether the bailout package will actually do the job intended, with little prospect of the Greek economy recovering using severe austerity measures without some form of debt relief and a plan for growth.
Meanwhile the ECB will also be in the spotlight.Meanwhile the ECB will also be in the spotlight.
[Not the English Cricket Board - there will be a separate live blog for the Test Match with Australia][Not the English Cricket Board - there will be a separate live blog for the Test Match with Australia]
The European Central Bank makes its normal policy statement and holds its normal press conference at lunchtime.The European Central Bank makes its normal policy statement and holds its normal press conference at lunchtime.
But given these are not normal times, the questioning will be on what the Bank will do about its emergency liquidity assistance for Greek banks. It could increase the ELA, reducing the squeeze on the banks, and paving the way for them to reopen. Any move, however, is likely to be modest.But given these are not normal times, the questioning will be on what the Bank will do about its emergency liquidity assistance for Greek banks. It could increase the ELA, reducing the squeeze on the banks, and paving the way for them to reopen. Any move, however, is likely to be modest.
Updated at 8.59am BSTUpdated at 8.59am BST