Greece’s Varoufakis hopeful a deal can be struckEU official says more meetings will be neededGermany: trust needs to be restoredInvestors on edge over Grexit fearsMalta: Germany is ready to let Greece go 6.46pm GMT Mega TV is now reporting that up to €1bn has been withdrawn by worried investors from local banks in Greece today, says Helena Smith in Athens. It is citing central Bank officials as saying that if the outflows keep at this pace, local lenders will need emergency funding from the European Central Bank “within the next week” to avoid financial collapse. The Greek government has apparently agreed to present “a list of reforms” to creditors by Monday, according to reporters outside the prime minister’s office. “The reforms will not include any measures that will worsen the country’s humanitarian crisis” Christos Tsigouris, Mega’s reporter, has been told by aides in the PM’s office. 6.42pm GMT European commissioner for economic affairs Pierre Moscovici tweets from the Eurogroup meeting in Brussels: “We’re making progress.”On avance, on avance, on avance..Déclaration à mon arrivée à la réunion de l'#Eurogroupe de ce jour : http://t.co/wKFQnERys9 #Grece #eu_commission #Eurogroup 6.36pm GMT Here are some comments from an EU official, who said that EU chief Donald Tusk won’t convene a summit of eurozone leaders on Sunday, even if finance ministers fail to come up with a deal on Greece, as reported earlier. Confirming that the Greek prime minister had asked Tusk to call a summit on Sunday if there’s no deal, the official said, according to Reuters:There will be no euro summit Sunday. However, Tusk will not hesitate to convene a euro summit, should he consider that this will be the right way to handle the situation. Before convening a summit, all options in the Eurogroup should be exhausted. 6.30pm GMT A Greek government official said, according to Reuters:There is an initial agreement on a joint draft text among the institutional partners, which is now being presented to all of the ministers. 6.26pm GMT Over in Athens, Mega TV on its flagship news programme is reporting the following, says Helena Smith: 6.20pm GMT #Greece govt source says agreement refers to 4 months extension and doesnt include austerity measures 6.19pm GMT European Council president Donal Tusk has ruled out holding a summit of eurozone leaders on Greece on Sunday – but stands ready to convene one in due course if necessary, Reuters reports. 6.02pm GMT Quoting a eurozone official, Reuters says the Eurogroup chairman Jeroen Dijsselbloem is now presenting the two-page draft statement to the 19 eurozone finance ministers.A Greek government official told the news agency, after preparatory talks between the Greek and German finance ministers, and the managing director of the IMF (a creditor):There is an initial agreement on a joint draft text among the institutional partners, which is now being presented to all of the ministers. Details may be defined later. But let’s see. 5.57pm GMT Meanwhile, the Greek news portal newsit.gr is reporting that Germany has no desire to see anything conclusive out of today’s euro group – and has gone so far as to suggest that Berlin’s objective is to deliberately sabotage negotiations so that an emergency summit of EU leaders is held next week. Helena Smith in Athens says there is mounting speculation that a summit will be called next Tuesday (after the Greek bank holiday of ‘clean Monday” marking the start of Lent). “Germany’s aim is for tonight’s euro group to fail so that we are lead to a summit meeting in which Tsipras sits opposite Merkel and each one shows their cards at whatever cost,” the news site said. 5.55pm GMT Jennifer Rankin reports:It is the end of the working week in Brussels, but the 19 finance ministers have only just started talks on Greece’s bailout deal. The start was delayed to allow for some last-minute shuttle diplomacy between Greece’s finance minister, Yanis Varoufakis, and his German opposite number, Wolfgang Schäuble, brokered by officials from the European Commission and International Monetary Fund. The head of the IMF, Christine Lagarde, was one of the first to arrive for today’s meeting. Jeroen Dijsselbloem, the head of the eurozone, has also been deeply involved. With some understatement, he described the talks earlier as “quite complicated”.It looks increasingly likely that anything agreed tonight will only be a holding deal, pending yet more talks. 5.53pm GMT Our reporter on the ground in Brussels tweets:EU source: There is a text, which now needs to be adopted by ministers. #eurogroup #greece 5.51pm GMT Reuters reports that eurozone finance ministers gathered in Brussels have drafted a common text that could form the basis for an agreement to extend Greece’s bailout package, citing Greek and eurozone officials. However officials stressed that there is as yet no formal agreement. 5.48pm GMT The euro jumps on the news, close to session highs of $1.1394. 5.47pm GMT Another news flash on Reuters: Eurozone ministers have agreed a draft accord with Athens that could extend the Greek bailout, according to a Greek government official. 5.42pm GMT Talks to save Greece from an imminent cash crunch have finally started in Brussels, Guardian reporter Jennifer Rankin reports.The make-or-break talks between 19 eurozone finance ministers are running more than three and a half hours late, delayed because of last-ditch preparatory talks involving the German finance minister, Wolfgang Schäuble, and his Greek counterpart, Yanis Varoufakis. 5.39pm GMT News flash on Reuters: The Greek prime minister Alexis Tsipras has asked European Council president Donald Tusk to convene an EU summit on Sunday if finance ministers fail to hammer out a deal today, according to a Greek government official. 5.36pm GMT Greece has reacted with fury to suggestions that it sent the “wrong” letter outlining its request for a sixth-month extension of its bailout programme, our correspondent in Athens Helena Smith reports. The Greek media is reporting that an irate Yanis Varoufis emerged from talks in Brussels with fellow euro zone finance ministers this afternoon to vehemently denounce the allegation - carried in the mass-selling German tabloid Bild (as reported earlier). The truth bears no reality, whatsoever, to these slanderous leaks. 5.33pm GMT Varoufakis has dismissed the report from German newspaper Bild that Greece sent the wrong letter to request a loan extension on Thursday. He tweeted (from the Eurogroup meeting in Brussels):One must believe @BILD's tall stories (about us Greeks) at one's peril. 5.03pm GMT Let’s have a look at the markets. Greek bond yields pushed lower on hopes that Athens and Brussels will, eventually, reach a deal. Yields on ten-year government bonds dropped 8 basis points to 10.15% while three-year yields tumbled 57 basis points to 16.55%. 4.44pm GMT More on those suggestions that a deal won’t happen today.Newswire MNI reports that Eurogroup finance ministers aim to release a joint statement this evening on Greece which will outline that significant progress has been made in the negotiations, but a deal is being held up by “technicalities”.The aim, as it is at the moment, is to get the joint statement out this evening and hold a teleconference over the weekend to finalise the deal, if all goes well. 4.31pm GMT While we are waiting for news from Brussels, here are some interesting charts courtesy of the Economist.Greece's economic woes in charts http://t.co/720Wnrmkfd pic.twitter.com/7XQKtQShoZ 4.24pm GMT You couldn’t make this up. Apparently, Greece sent the wrong letter on Thursday, German newspaper Bild reports, citing government sources. The right version supposedly accepted bailout conditions agreed to by the previous Greek government. 3.42pm GMT Eurogroup President Jeroen Dijsselbloem has given a brief statement before he chairs the meeting.The eurogroup will start as soon as possible, but it’s quite complicated.There is still reason for optimism but it is very difficult. 3.18pm GMT Austria’s finance minister said there was still much to discuss as he arrived for the eurogroup meeting in Brussels. Hans Joerg Schelling said the Greek proposals left much to interpretation, suggesting clarity and more detail would be needed before an agreement is possible.Austria’s Schelling: “We have a letter. This letter has many sentences with much space for interpretation. We have to work on it now...”Austrian fin min Schelling broadly shares German line: Greek letter leaves much to interpretation and this has to be ironed out. 2.58pm GMT German finance minister Schauble has pulled out of public debate Monday with George Osborne "because of the Greece situation", we are toldThis doesn’t fill me with hope that a deal is going to be struck today... 2.49pm GMT Eurogroup seeks joint statement w/ #Greece on Friday, Eurogroup official says. Could hold teleconference over weekend to hammer deal. (MNI) 2.46pm GMT The watchword for Germany is trust. For Greece it is honour. Still not clear the two can be reconciled. 2.42pm GMT Next up is Christine Lagarde, managing director of the International Monetary Fund. 2.35pm GMT Germany’s finance minister Wolfgang Schaeuble has arrived for the meeting in Brussels.This is about being able to trust each other and that we can reinforce the trust in the future of this European unification project of people in all European countries.That’s the actual task and that’s what we are working on with all our might. German Fin Min Schaeuble arrives for key meeting on Greece: 'everything that needs to be said has been said.' 2.10pm GMT Yanis Varoufakis has arrived in Brussels and has been speaking to reporters on his way into the eurogroup meeting.He said he is still hopeful of a deal today, and suggesting Greece is offering a large dollop of compromise.I trust that we are going to have one. The Greek government has not just gone the extra mile but the extra 10 miles and now we are expecting our partners not to meet us halfway but a fifth of a way.I have no doubt there will be a very collegial discussion and hopefully at the end of this we come out with some white smoke.Varoufakis arrives at the eurogroup hoping for a deal: "The Greek government has gone not the extra mile, but the extra 10 miles."#Greece: FinMin optimist at arrival to #eurogroup meeting - "there will be white smoke w/ a bit of luck" "@beanavarro pic.twitter.com/gVIJyY9yn6Michel Sapin of France is here: the solution lies in every eurozone capital, everyone is working. 2.03pm GMT Upshot of Merkel-Hollande talks seems to be that further EU meetings on Greece - with france and germany in lead - are inevitable. 1.55pm GMT The German Chancellor Angela Merkel and French President Francois Hollande followed a meeting in Paris with a press conference.Greece is in the eurozone and it must remain in the eurozone. 1.37pm GMT Angela Merkel and Francois Hollande are giving a press conference. It’s live here. 1.32pm GMT This is the moment for a historic political decision for the future of #Europe pic.twitter.com/vdBcv10UXkBut which way will it go? 1.32pm GMT A deal is unlikely to be struck at the eurogroup meeting in Brussels today, an unnamed EU official has told Bloomberg.The official said finance ministers might have a long meeting that is not conclusive, but added they might be able to agree on a “statement of progress”, with some commitments from Greece.EU official says #Greece deal Friday night looking unlikely; Ministers might be able to agree on statement of progressSame EU official says Progress Statement could pave way for more technical work and ministers could have conference call on Sunday or MondayMeanwhile ... German 5 year yield drops to record low of -0.084% 1.19pm GMT Market jitters are really starting to surface now as hopes fade that a deal will be struck todayGreek shares have fallen into the red, with the ATG index down 1.7% at 841.6. 1.09pm GMT The Maltese finance minister says countries led by Germany are prepared to see Greece leave the eurozone. They are becoming increasingly frustrated with Greek government demands, according to Edward Scicluna.I think they’ve now reached a point where they will tell Greece: “if you really want to leave, leave”.And I think they mean it because Germany, the Netherlands and others will be hard and they will insist that Greece repays back the solidarity shown by the member states by respecting the conditions. 12.52pm GMT Greek investors are feeling less optimistic than they were at the beginning of the day.The ATG index in Athens - up more than 1% this morning - is now roughly flat, up just 0.1% at 857.4. 12.44pm GMT It’s all beginning to feel a little bit fraught now as time ticks on. Conflicting views among some of the key players are muddying the waters.I feel certain that the Greek letter for a six-month extension of the loan agreement with the conditionalities that accompany it will be accepted. This is the moment for a historic political decision for the future of Europe. 12.32pm GMT The euro has fallen further against the dollar since Spiegel’s report that the ECB is making plans for a Greek exit from the euro.It slipped below €1.13 at one point is now trading at $1.1307.The market is making way too much of thie Spiegel | ECB report #FX #EURO #GreeceSpiegel wailing about ECB contingency planning for a #Grexit. I would think they are; what incentive do they have to not? 12.22pm GMT The emergency eurogroup meeting has been delayed by an hour and an half to 16.30 (15.30 UK time).Start #Eurogroup rescheduled to 16.30. Very brief statement president Dijsselbloem somewhere around 15.00 at VIP entrance. 12.17pm GMT Officials at the European Central Bank are preparing for a Greek exit from the euro, German magazine Spiegel is reporting.ECB staff are drawing up contingency plans for how the rest of the eurozone could stay together in the event of a Greek exit. 12.00pm GMT Portugal appears to be taking a hard line on Greece.The country’s prime minister, Pedro Passos Coelho, said it is “not acceptable” that Greece is not assuming responsibilities in exchange for funding.Portugal: Unacceptable to Extend Greek Loans Without Conditions 11.24am GMT Both sides now appear to be playing down the prospect of a positive outcome from today’s emergency eurogroup meeting on Greece’s potential bailout extension. Highlighting the growing perception that today’s meeting could be one of many, Yiannis Amanatidis, an MP with the governing radical left Syriza party, has just told SKAI TV that “today the discussion will begin.” “I am not expecting a final result, today it all begins,” he said. Asked if a solution would ultimately entail the Greek parliament having to endorse yet more austerity measures as creditors at the EU and IMF have demanded, the MP (looking a little pale) shook his head and said: “no, that is the difference between us and the previous government whose policies only ensured recession.” 10.37am GMT There is already quite a lot of chatter about the possibility of ANOTHER summit (or two, or three) should today’s talks end in stalemate.Helena Smith reports from Athens:Officials are playing down talk of make-or-break decisions today, saying negotiations have only just begun.For the Greeks this is not D-Day but very likely the first in a series of eurogroups and top-level meetings that will get down to the “to and fro” of negotiation. #Greece will request EU summit should Eurogroup talks fail, a top ranking SYRIZA official has told dpa.Investors still don't think #Greece will exit the #Euro. Greek bonds trade 24% above 5yr avg. http://t.co/LCkFY2wjzv pic.twitter.com/DFLoRag00c 10.22am GMT A Greek government official has told Reuters that Greece and the rest of the eurozone are close to reaching a deal ahead of this afternoon’s all-important meeting in Brussels.The official, who did not want to be named, said Greece had made a lot of concessions and that the eurozone should also be flexible.We have covered four fifths of the distance, they also need to consider one fifth. 10.10am GMT Over in Athens, the Guardian’s correspondent Helena Smith says there is a lot of talk about whether or nor Greek banks can survive the massive surge in cash withdrawals in recent weeks.In the corridors of power and on the street, there is a pressing issue that many now speak about only in hushed tones and confidential whispers: the solvency of Greek banks. No society can exist for long without a properly functioning banking system. Since prime minister Alexis Tsipras’ far left Syriza party surged to power, the political uncertainty that has accompanied the drama over whether Greece pulls out of its EU-IMF funded bailout programme, has resulted in massive withdrawals from local lenders. 9.49am GMT The euro is down against the dollar for a third day as traders remain cautious. It is currently trading at $1.1316, down 0.4%.Adam Myers, European head of currency strategy at Credit Agricole, thinks markets are being too optimistic that an agreement will be reached between Greece and the rest of the eurozone. The reason that the euro is not lower is that a lot of people still have this sanguine view that there will be an agreement because they have to reach one.At the moment the market reaction is too sanguine.There is clearly a very significant concern reemerging at the moment that we are seeing real issues surrounding the eurozone. If they have to impose capital controls to keep Greece in, that is really about a two-tier euro and is that then the beginning of the end? 9.23am GMT Thank you for your comments so far this morning, please keep them coming.There doesn’t seem to be much optimism about the outcome for Greece among readers. 8.56am GMT Optimism reigns in Athens this morning if Greek share prices are anything to go by.The main ATG index is up 1.4% at 868.27. The banks are the main gainers. 8.43am GMT Finland’s finance minister says he is hopeful that a deal will be agreed to extend Greece’s bailout programme.Speaking to newspaper Helsingin Sanomat, Antti Rinne said:Last night a spark of hope arose that an understanding could be reached ... so that Greece could continue the underlying programme to strengthen its economy. 8.28am GMT European investors are feeling cautious this morning before this afternoon’s crunch eurogroup talks. Shares are modestly lower, suggesting that while the German finance ministry’s comments have knocked sentiment, investors are not giving up on the idea that a compromise can be reached. 8.16am GMT It has been a challenging few weeks for the new Greek government, particularly for the Prime Minister Alexis Tsipras and his finance minister Yanis Varoufakis.Jetting back and forth between parliament in Athens and meetings with his counterparts across Europe, Varoufakis is determined to keep some perspective despite the pressure.Two nights ago I saw S, Beckett's Happy Days (Greek National Theatre). Splendid performance(s). Such a relief from you know what... 8.09am GMT Will there be light at the end of the tunnel for Greece? Guenther Oettinger, Germany’s EU commissioner, believes a deal is possible between Greece and its eurozone creditors but that it might take longer than a day to hammer out an agreement.We are working so that Greece stays in the eurozone . On this basis I think an agreement will still be possible in the next eight days - if necessary via a further meeting of government leaders. 7.59am GMT Greek prime minister Alexis Tsipras had a series of telephone conversations with fellow eurozone leaders, to discuss Greece’s proposals.Significantly, he spoke to the German Chancellor Angela Merkel, hinting that she does not share her finance minister’s uncompromising stance. It was Wolfgang Schaeuble’s office that rejected the Greek proposals on Thursday.Phone call w/Chancellor #Merkel earlier today: positive tone, and interest in finding a mutually beneficial solution for #Greece & #EurozoneOn the phone with @fhollande He sincerely wants to find a mutually beneficial solution #Greece pic.twitter.com/IgaRu20dNF 7.51am GMT Good morning.#Eurogroup Friday in Brussels as of 15.00.There is a phrase for what Germany is seeking to do to Greece: a Carthaginian peace. It dates back to the Punic wars when Rome emerged victorious in its long struggle with Carthage but refused to allow its opponent the chance of an honourable surrender. Instead, it enforced a brutal settlement, burning Carthage to the ground and enslaving those inhabitants it did not massacre.A Carthaginian peace is what is being offered to Alexis Tsipras. On Thursday, the Greek prime minister made it clear that he was willing to see the white flag of surrender flutter over Athens. He accepted that he would have to swallow most of the conditions demanded of him by Greece’s eurozone partners but asked for a few concessions to sugar the pill. Continue reading...
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