European council president Donald Tusk has backed calls for Greece’s debt sustainability to be tackled as part of a third bailoutTusk: Creditors must address debt sustainabilityIntroduction: Today’s deadline can’t whoosh byDraghi: This time it’s really difficultFrench officials are helping Greece€12bn of fresh austerity?Athens stock market to stay closed till Monday 12.41pm BST Bad news for eurozone crisis watchers who fancied a quiet weekend - eurozone finance ministers will meet at 2pm BST (4pm Athens time) on Saturday to discuss Greece’s proposals (once they’re written):* Euro zone finance ministers plan to start Eurogroup on Greece at 3pm cet (1300 gmt) Saturday to discuss Greek proposals - officials - RTRS 12.32pm BST Political developments in Athens....#Greece Cabinet council meeting in 30 minutes. Should make final decision on reform proposal. #GreeceCrisis 12.14pm BST 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.“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” Related: IMF says Greece needs extra €60bn in funds and debt relief 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 BST 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 BST 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 situation 11.37am BST 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:Juncker to meet Greek opposition parties today and Friday, says @MargSchinas. #grexit @JunckerEU @tsipras_euNew 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. 11.20am BST 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' proposalsWe have had months of goodwill. we now need proposals. 11.18am BST 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.Otherwise we will continue the lethargic dance that we have been dancing for the last five months. 11.13am BST 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. 11.11am BST 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. 10.55am BST 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%.Michael Noonan believes Greece has a "better than 50 percent" chance of getting a new bailout deal. pic.twitter.com/5qqH5ANftwNOONAN SAYS TSIPRAS HAS A WINDOW OF OPPORTUNITY FOR DEAL *NOONAN SAYS THINKS TSIPRAS `WILL CARRY A DEAL'Irish FinMin Noonan says 'seems like' #Greece working on conditionality; believes Tsipras 'will carry a deal'; 'very impressed' w TsakalòtosNoonan in fine flying form on Greece....describes new fin min ``wealthy, impressive, marxist'' 10.26am BST 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. 10.21am BST 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. 10.11am BST 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%.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. Temporary respite or something more lasting? China stocks bounce back after days of panic selling among investors http://t.co/FudXYMP0x9 9.37am BST Alexis 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) 9.34am BST 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.At 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 9.23am BST 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.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.Tsipras called #Grereferendum for a €8-9bln austerity package, now he is gonna have to implement about €12bln #result 9.17am BST 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. 8.59am BST Over in Athens insiders are saying that French help in drawing up the country’s new reform proposal is proving invaluable. “It is being done all over again, measure by measure. They are offering invaluable assistance.” “I am very optimistic for the first time in days.” 8.49am BST Greek pensioners have been queuing at bank branches today, to receive the maximum €120 they are entitled to under capital controls. 8.45am BST #Greece FinMin Tsakalòtos back in Athens. To meet with PM Tsipras this am to finalize Greek prior actions proposal to the #Eurogroup. 8.22am BST 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 8.19am BST Mario Draghi, one of the crucial players in this drama, has warned that resolving the Greece crisis will be very tough.“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)“I don’t see it as a real risk ... and then, they don’t have money themselves.” 8.03am BST Good morning, and welcome to our rolling coverage of the Greek debt crisis.“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.” Continue reading...
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