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Monday, July 13, 2015

Greece came ridiculously close to leaving the euro this weekend (GREK)

Greece came ridiculously close to leaving the euro this weekend. A report from The Financial Times on Monday morning is jam-packed with details about what went on inside the Greek bailout negotiations this weekend in Brussels. And it was not good. As the FT tells it, German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras rose from their chairs at 6 a.m. on Monday and headed for the door, resigned to a Greek exit from the euro. "Sorry, but there is no way you are leaving this room," European Council president Donald Tusk reportedly said. And so a Grexit was avoided. But the FT's report is a bombshell, outlining just how hard the negotiations this weekend were for all involved. One participant described the negotiations as "violent." "They crucified Tsipras in there," one official told the FT. According to the FT, at one point French finance minister Michel Sapin suggested that everyone in the room, "get it all out and tell one another the truth." Following this suggestion, "Many in the room seized the opportunity with relish," the FT said. This included Finnish finance minister Alexander Stubb blaming Greece for 50 years of failing to implement reforms; all the while Greek finance minister Euclid Tsakalotos, "was oddly subdued." Bloomberg's behind-the-scenes breakdown of the talks cites two officials who "independently described [Tsipras] as a 'beaten dog.'" Ultimately, a deal was reached, though Greece still needs to get the program through its parliament by Wednesday. And with Tsipras having given away so much ground, particularly after a Greek vote against a similar bailout package last week, Bloomberg notes that it remains to be seen whether Tsipras will even stick around for the implementation of this latest bailout program. Meanwhile, the European Central Bank is reportedly not ready to increase its Emergency Liquidity Assistance just yet, and so it seems that the situation on the ground in Greece isn't likely to change. Banks will remain closed, the stock market will remain closed, and the Greek economy is still more or less frozen. But at least with a path to a deal in sight, it seems Europe has backed away from the cliff that would have sent Greece tumbling into a future outside the euro. For now, at least. Read the full report in the FT here »SEE ALSO: 'AGreekment' Join the conversation about this story » NOW WATCH: 5 scientifically proven ways to make someone fall in love with you


READ THE ORIGINAL POST AT www.businessinsider.com