The Summit of the euro area still no decision on Greece, continues to seek agreement. Eurozone leaders from 16.00 yesterday in Brussels talk about the terms of the grant Athens further financial support. One of the most controversial records has already been deleted from the draft conclusions of the summit.
The four-page proposal, which was leaked to the media contains agreed by the finance ministers of euro area countries the conditions that Greece must meet in order to be able to begin negotiations on a package of aid from the European Stability Mechanism (ESM). Part records but did not gain the support of all ministers and has been acquired brackets. Now – according to sources – heads of State and government of the eurozone have to work on those parts of the text. If they fail to agree on the Eurogroup document will be converted in a statement after a summit of the euro area.
In parentheses entered into the document, that in the absence of an agreement would offer Greece a quick negotiations on its temporarily leave the eurozone and restructure its debt. However, this option excludes many Eurozone countries, including France.
Optionally, the document also says that the eurozone countries are ready to consider additional measures to “ease the path to debt service” for Greece. An example of such. To extend loan repayment periods.
– have a long night – summed up the source indicating that before the end of the meeting will be held at least another break for consultations.
In Brussels, the last extraordinary summit of Eurozone leaders, who – according to sources – is designed to achieve “agreement on principles” to launch negotiations on a new aid program for Greece. The government in Athens has asked for support in the amount of 53.5 billion euros over three years and instead proposed reform, among others, Tax and pensions.
Greeks do not like the conditions
The Greeks do not like the conditions set by the eurozone in return for the loan. Another break at the summit in Brussels and Greek Prime Minister re-consultation with Chancellor of Germany, the French president and the head of the European Council.
Athens do not like the proposals in the document prepared by the finance ministers of the euro area. “It’s a very bad document. Ideas from another planet” – commented in unofficial conversations Greek diplomats. For example, the creation of a fund and the Greek pledging of assets worth 50 billion euros. Revenues from privatization of property would be transferred to the repayment of debt. The fund, although managed by the Greek authorities, would be supervised by the EU institutions and would be based in Luxembourg. Greece does not want a longer borrow money from the International Monetary Fund. He wants loans from the eurozone, calls for a guarantee that the European Central Bank will continue to maintain emergency loans to Greek banks.
There is no record of the temporary exit of Greece from the euro area
There is no record of the temporary exit of Greece from the euro zone. German proposal on this matter was deleted from the draft document that Eurozone leaders are expected to adopt at the summit in Brussels. Berlin has proposed such an entry in the event of disagreement with Athens on the allocation of the next bailout package. In the latest draft of the summit conclusions has not already there. – And I hope that this provision will not see – said a senior EU official.
There are money for immediate help for Greece?
The leaders of the eurozone have found the money for immediate support for Greece. They must still approve all the countries of the Commonwealth, and the opportunity to be Tuesday’s meeting of EU finance ministers in Brussels. It’s about a little more than seven billion euros, which would be passed in the coming weeks. This is to ensure the solvency of Greece and the repayment of overdue loans, and those to come.
The temporary rescue fund, created in 2010, is still 13 billion euros available. It would be emergency aid, but there is still no agreement of eurozone on long-term support, until 2018. It is estimated that Greece will need up to 86 billion euros. Euroland does not give the green light, because they do not trust the authorities in Athens that implement all the reforms to which they are committed.
Source: tug of war at the top ws. Greece, among others, privatization
The privatization and how to finance immediate loan to Greece to settle payments for the ECB is the most important topics night of negotiations EU leaders who agree on the conditions of the new support program for Athens – EU sources say.
According to these sources during the drafting of a joint document of the leaders eventually opted out of any record about the possibility of a temporary Greek exit from the euro zone, which suggested even on Sunday afternoon Germany.
Just before midnight on Sunday, European Council President Donald Tusk announced a second break in the meeting summit consultations in smaller groups. As he told reporters, a senior EU official, after midnight on the table of negotiations remained primarily three things. The first is a way to finance immediate loan which Athens need to regulate the maturing July 20 installment receivables for the European Central Bank in the amount. 3.5 billion.
It is possible to use for that purpose profits from interest on Greek bonds, which has the ECB. For this solution it would be necessary consent of the bank. The second possibility is to provide bilateral loans to Greece by the eurozone countries; according to unofficial information readiness to support Athens in this way signaled France.
The third option is to activate the European Financial Stabilisation Mechanism (EFSM), which is currently 13 billion. EFSM is one of three tools support for euro area countries. As part of the EFSM, the European Commission could raise the financial markets preferred interest loans for a total amount of up to 60 billion euros. Since the EFSM is funded through the EU budget guarantees, it relates to all 28 member states. The aid to Greece would participate also Polish. At its launch must agree the EU finance ministers, and the decision requires a qualified majority. The next ministerial meeting is planned for Tuesday.
Another point that is being discussed among the leaders of the Eurozone is Greece’s privatization. Lenders expect additional measures from Athens in this regard. The document, on which operates the summit of the euro area, as well as previous leaks that Germany wants the Greek authorities transferred state assets worth 50 billion euros to a special trust fund located in Luxembourg, but under the management of the Greeks. Revenues from privatization of these assets would cover the debts of Greece.
According to a senior EU official close to the talks, none of the institutions representing lenders will not consider that gathering assets of such value was possible. According to the source, it is possible, however, that in the final commitment will record saying that the value of assets to be held for the privatization of reach “up to 50 billion euros” and that the long term (probably until the repayment of the loans by the Greeks the euro zone, or outside 2050 years).
According to a senior EU official third issue, which still requires clarification during the summit negotiations are raised Netherlands to the reforms introduced in recent months by the leftist government of Greece. – The Netherlands believes that some of these reforms serve reversed actions implemented in previous years under the previous bailouts – said the official. According to him, the document from the summit would find a record that these reforms, for example. Recruit additional staff in public administration, will be “corrected and compensated”.
There is no doubt that the International Monetary Fund will participate in the new aid program for Greece. – The share of the IMF is accepted by the Greek government – said the official.
There is also no discussion about ensuring that the European Central Bank liquidity of Greek banks. Her cut-off would be a consequence of disagreement and de facto mean paralysis of the Greek banking system and consequently a Greek exit from the euro zone. – The ECB is independent (…) However, if the program will be prospects for Greece, it will obviously have consequences (for the ECB’s decision ws. Providing liquidity Greek banks – but reserved the source.
The draft document from the summit of the Eurozone contains conditions that Greece must meet in order to be able to begin negotiations on a package of aid from the European Stability Mechanism (ESM) in height. 53.5 billion. These include immediate reforms that the Greek parliament would adopt until Wednesday.
Euroszczyt still without a decision, continues to seek agreement
The Summit of the euro area still no decision on Greece, continues to seek agreement. Eurozone leaders from 16.00 yesterday in Brussels talk about the terms of the grant Athens further financial support. One of the most controversial records has already been deleted from the draft conclusions of the summit.
It’s about a German proposal to enter into a document quick negotiations on the temporary exit of Greece from the eurozone in case of disagreement with Athens. The second, equally controversial proposal of Germany, which does not like Greece, is still debated. It’s about the creation of the Fund and pledging Greek assets worth 50 billion euros. Revenues from privatization of property would be transferred to the repayment of debt. The fund, although managed by the Greek authorities, would be supervised by the EU institutions and would be based in Luxembourg. Lenders have doubts about whether it can collect the assets of such value. A compromise solution has to be a record of the fund to 50 billion euros, to be used for several years, or until repay borrowings by the Greeks. On the other hand, there are indications that managed to find the money for immediate support for Greece. They must still approve all the countries of the Commonwealth, and the opportunity to be Tuesday’s meeting of EU finance ministers in Brussels. It’s about a little more than seven billion euros, which would be passed in the coming weeks. This is to ensure Greece’s repayment of overdue loans, and those to come. The temporary rescue fund, created in 2010, is still 13 billion euros available. It would be emergency aid, but there is still no agreement of eurozone on long-term support, until 2018. It is estimated that Greece will need up to 86 billion euros. Euroland does not give the green light, because they do not trust the authorities in Athens that implement all the reforms to which they are committed.
Euroland does not trust Greece – the first reform of the then money
Euroland does not trust Greece. He wants to first implement urgent reforms Athens and then decide whether to start negotiations on the financial support. This should be a signal from the summit of euro zone leaders in Brussels devoted to Greece. The meeting lasts from 16.00 yesterday. Diplomats emphasize, however, that the chances of being successful.
From the findings of EU leaders that Athens Wednesday will have to implement urgent reforms. With regard to changes in the tax system of restrictions on early retirement, as well as antitrust law. Euroland also expects to accelerate privatization. So alone was not enough reforms and savings plan, which the authorities in Athens have sent to Brussels. The leaders of the euro area require concrete actions and decisions. Only then, probably on Thursday, will give the green light to start negotiations on financial assistance. Such preliminary arrangements were already in the first hours of the summit. The talks now extend up because EU leaders carry out disputes about the final shape of the conclusions of the summit. The disputed provision was, for example, to temporarily exit of Greece from the euro zone proposed by Germany and supported by Finland, but protested by other countries, mainly by France. Lastly negotiations on the provision for the establishment of the fund and transfer the pledge of Greek assets worth 50 billion euros. Revenues from privatization of property would be transferred to the repayment of debt. The fund, although managed by the Greek authorities, would be supervised by the EU institutions and would be based in Luxembourg. Fell argued that this idea of humiliating and receiving Greece’s sovereignty.
Negotiations on a new compromise proposal
The leaders of the 19 euro zone countries began discussions on a new compromise proposal on the aid scheme for Greece. The project developed during the consultations attended by leaders of Greece, Germany and France, and the head of the European Council.
– The European Council President Donald Tusk in 10 minutes resumes deliberations euro summit on Greece proposed a compromise – announced the chief spokesman Preben RE Aamann.
Previously, for nearly four hours deliberations were suspended and permanent consultations in narrow circle. Tusk met with Greek Prime Minister Alexis Ciprasem, German Chancellor Angela Merkel and French President Francois Hollande to work out a compromise proposal.
The basis for discussion was a document submitted by the finance ministers of the euro area and providing additional conditions which made conditional permission to start negotiations on a third aid program for Greece. Athens would commit itself to the adoption of m.in have until July 15 to several acts, including introducing reforms VAT and the pension system.
The long dispute took place in the sources of financing bridging loans for Greece to repay amounts owed to the European Central Bank, as well as privatization. According to sources it negotiated provisions, according to which Greece would pass to a special trust fund for state assets worth 50 billion euros. Revenue from its privatization would be used to cover debt repayments Athens. The fund would be administered by the Greeks, but under the supervision of European institutions.
In the last week threatened bankruptcy of Greece asked the euro zone for support in the amount of 53.5 billion euros for a period of three years.
See also: Spain, Italy and Portugal – who after Greece?
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