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Updated 22.33
THE EUROZONE HAS received new bailout reform plans from Greece, a spokesman for Eurogroup chief Jeroen Dijsselbloem said tonight, less than two hours ahead of a midnight deadline.
Details of the new plans were not immediately available, but debt-stricken Greece’s creditors have demanded pension cuts and tax reforms in return for a new rescue package.
Leaders of the 19-country single currency area gave Prime Minister Alexis Tsipras the deadline at an emergency summit on Tuesday, warning that failure to comply risked Greece’s place in the euro.
Greeks overwhelmingly voted in a referendum on Sunday to reject previous austerity demands from international creditors in exchange for a new aid programme to replace the one that expired on 30 June.
At 9.30pm it seemed there may have been a hitch with the proposals as signed letters were not initially forthcoming.
Just after 10pm the requisite signed letters were received and the technical hitch was averted.
The cash strapped country needs money to reopen its banks which have been closed for nearly two weeks, and eurozone leaders have warned that the European Central Bank will cut emergency funding if it does not reach a new deal.
The new reform proposals will now be scrutinised by officials from Greece’s EU-IMF creditors, before going before eurozone finance ministers on Saturday and a full summit of all 28 European Union leaders on Sunday.
“The (creditor) institutions will examine them to give their view to the Eurogroup,” a European source told AFP on condition of anonymity.
They also need these proposals to determine the size of the bailout programme – that will also depend upon broader economic scenarios.
Greece’s application letter on Wednesday to the eurozone’s bailout fund, the European Stability Mechanism, called for a three-year programme but did not say how much money was needed.
Greek Prime Minister Alexis Tsipras vowed yesterday to present “credible” plans to seal more emergency loans from his exasperated European creditors ahead of a summit of all 28 EU leaders on the debt crisis on Sunday.
“The Greek government will tomorrow file new concrete proposals, credible reforms, for a fair and viable solution,” Tsipras told lawmakers at the the European Parliament in Strasbourg.
Greeks decisively rejected the latest bailout offer from EU leaders in a referendum on Sunday.
But the euphoria felt by some Greeks after the vote has quickly faded as capital controls have extended into their second week, limiting ATM withdrawals, and fears have grown over dwindling supplies of food and medicine.
Eurozone leaders lost patience with Greece on Tuesday after Tsipras and his new finance minister Euclid Tsakalotos showed up to a summit with no proposals.
However, the Greeks have officially decided to play ball.
In a formal letter to the European Stability Mechanism (ESM) – the EU’s lender of last resort – Tsakalotos said Greece would “immediately implement a set of measures as early as the beginning of next week”.
With additional reporting from AFP and Cianan Brennan.
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As I see it last Sunday the Greeks told those that lent them money to go and fukk themselves and that we are not paying you back. Now they want to borrow more money and we are considering giving them more but they really don’t want to make necessary changes.
So creditors who were complicit in Greek corruption shouldn’t take any hair cut on money they lent? Have you just tuned into this whole crisis today?
Creditors were not complicit in Greek corruption.
Interesting Pontias… Wonder if that had anything to do with Varoufakis’s resignation?
If that’s true Tsipiras must’ve been cursing under his breath whilst smiling as the results came in, a bit like how RTE must’ve been secretly cursing every time Ireland won the eurovision!
The Greeks are staring terminal decline in the face, what would you like our govt to do? Lie down and take it?
David, the creditors were not complicit in Greek corruption which by the standards of even the most corrupt EU states has been seen as utterly staggering at every single level of governance. Yes the Greeks may be staring terminal decline in the face but they are an independent nation and are entitled to run their affairs as they wish. Unless the EU can step in (which it cannot) and dissolve the national Government and administer Greece, it can do very little to force a change in the behaviour which has led to this catastrophe. As we all know, change has to come from the inside. Nobody can really force you to change. You can compel a certain level of change with control but it rarely lasts. Can the Greeks change themselves? All the evidence of the last 180 years would suggest that they cannot. The game is up.
John, you mean the game is up for the EU as it’s those idiots who are playing politics while the Greek people suffer. Hopefully Greece tells them to fuk right off and shows the other idiots who comply with all Brussels commands what can be done without the Euro strangling them do death.
Down with the undemocratic EU
We’ll find out very soon if the people who have said all along that Europe will cut Greece a deal at any price are right or wrong.
Like the Finnish minister said, yes Greece can have a referendum, but they can’t vote in Greece and send the bill to Finland
I think we will see that the Greeks can.
They have a mandate for Grexit.
The Finnish Minister really just shows why the Euro should never have been created.
His point is fair but it is not one that can work in a currency union or zone.
If he is Pro-Euro then he is a hypocrite to be complaining about backing it now.
John, I agree. USA is a common currency area with a wide variety of economies but all supported by 1 system which seeks to keep the Union intact ie. California is not Alabama etc. It is accepted that the strong support the weak. This is lacking and is the fundamental flaw in the EZ and acutally why GB refused to join. German strategy is simple: Deutsche Bank must always profit.
Hard to feel sorry for a bunch of folk(median speaking of course) that have the craic every day in the sun, paying little tax, showing very little responsibility. I am with Pontious here, I want the EU to eradicate left- wing free-love craziness, and as an aside, I want a stronger euro and Greece to keep thriving – albeit Dragma style!
fool
You cant get blood from a stone
5 months wasted while the Greek economy crumbles. Would have been better if they had opted for a Grexit while the economy was still cashed up. Some mess now.
Greece promising to implement reforms. Where have we heard that before? Feel sorry for the Greek people. But you reap what you sow. If you keep electing reckless Governments and reward them for spending money the nation doesn’t have, ultimately you will pay the price. See Fianna Fáil. And in a Democratic Europe it is right that it be you who pays the price, not citizens of other nations- many of which have a lower standard of living than Greece.
“If you keep electing reckless governments…”
You’re Irish right?
You see what’s offered to us at each election?
You don’t think the Greeks want a government that acts correctly and in their best interests, just as we do?
These corrupt worms are embedded in our political system.
Until they are rooted out, we are all screwed one way or another!
Some more than others.
Have you read the reports on tax evasion in Greece? Like ireland with greedy borrowers, welfare fraud and strategic mortgage defaulters the public have the ability to screw themselves as well! It’s not always the governments fault chief.
It’s the Governments responsibility to stop tax evasion. Every other EU Government seems to be able to minimise it. You have to want to do it, though.
You go ahead & pigeon hole 11 million people in to those categories.
I’ll believe the more likely scenario that political corruption as a result of weak to no enforcement of the law, no audits, no codes of conduct & no transparency of government activities has caused the ruination of the Greek people.
KMac, your comment is a typical comment of someone who is too lazy to try and change anything and just wants to moan about everyone else who does make an effort.
Yes, Ireland had problems with corruption in the past, particularly in the Haughey era, but the country has made huge strides since then and while cronyism is still a problem in some areas, I don’t believe the levels of corruption either in politics or society at large are problematic. The same cannot be said for Greece and other countries like Italy where corruption truly is embedded.
Nice attempt at a sidestep away from our current corrupt government party & the awarding of contracts to a certain billionaire as confirmed by Moriarty & in time, the current inquiry, at a loss to the Irish people.
Selective in your amnesia it would seem.
The Moriarty tribunal goes back to the very era I just mentioned and if you think that Enda Kenny is corrupt then he must be bloody awful at it because he’s not personally very wealthy. You might question the competency of some of our politicians but most of them are hard working, well meaning and honest. I know that comments like that don’t go down well with some of the disaffected mob on the Journal like yourself but that’s the reality.
Have a read of the “well meaning Emmet Stagg” article there today, talking out both sides of his mouth.
Have a look at “well meaning Joan Burton” going after the most vulnerable, talking out both sides of her mouth.
Have a chat with “well meaning Enda Kenny” about his pre-election pledge to protect & defend Roscommon Hospital,talking out both sides of his mouth.
Give “well meaning Leo Varadkar” a ring & ask him how did the “not another cent” policy with the banks go, talking out both sides of his mouth.
You talk about incompetence. I suggest you have a look at the Peoples Debate from last night in Tullamore.
VB: For the umpteenth time, how have FG reduced the Anglo debt?!
FG TD: We’re paying it over a longer period of time.
knickers of a bare arse
You have a disproportionately high amount of self employed and small businesses. It is rife. They need to kill it and remove it from the culture. If they can do that Greece will be fine. They are screwing each other over down there and blaming everyone else
People in glass houses – have you seen how little tax multinationals pay in ireland whilst ordinary joe soap is paying taxes til they bleed.
Your view of ordinary Greeks is the mirror image of Americans on the double irish.
Cop on to your self KMac You can’t be that naive to believe the ordinary Greek people caused this …bloody big business and the men in grey suites …. They need our solidarity no silly sarcasm
Meiread, have another drink for yourself & go to bed or try reading my points again when your sober.
On a humanitarian front..is it right that a member of the EU fears running out of the basics of life because of its economic position? Greece has done more for the Syrian refugees than the rest of Europe and its people don’t deserve the stress its being put through.
They cooked the books to join the euro and have been spending billions upon billions more than they bring in every year, the rest of Europe, either better off or poorer countries can’t keep funding them indefinetly.
The EU itself sent in the book cookers!
@Tony – Greece remains a wealthy country. Just a totally corrupt one where very few pay their taxes.
Goldman Sachs helped them to cook the books ..
They voted against basically saying they don’t want to pay back the money they get .. Fair enough then give them nothing
Greece’s debt was to private banks. It was unsustainable 2010, they should have gone bust then but Germany wouldnt let them as it was mainly to German banks. Instead Germany agreed to haircut the banks debts and swap all the rest of debt for Greece being forced to take a loan from sovereign partners (tax payers of all europe) for the rest. After 5 years of the deepest reforms in europe (True) it is clear that it was like getting a credit card to service your morgage.. lots of spin and lies about the Greeks. they ares far from perfect but he tea 2 points. 1) Germany has defaulted more time than Greece. 2) the average working week in Greece is 42.5 hours, in Germany it is 36 hours. Don’t believe everything you hear.
Greece hasn’t just gone through a world war so the timing of default is a very important piece of information you didn’t bother including. Germany also made huge efforts to turn around its economy and that is the exact opposite of what the Greeks tried to do. They cooked the books on a criminal scale while giving their people every tax break you can imagine. The small few who pay tax that is. Anyone that has travelled to Greece will be well aware of tax avoidance as a common theme when paying for goods as most places unless bigger brand store will not take cards as payment. As a nation Greece did everything in its power to scrounge off Europe and avoid paying it’s way. Forget about your hatred of Europe, this mess is and has been caused solely by the lack of will by the Greek people to pay there way and rack up less debt. sure they would still be broke but they might be in a situation to make cutbacks and over a 15 year period get back on top of their finances. now they are destitute and have ruined the future of there children.
Chuck, as @JunckerEU said about the Greek Referendum, your point about the war is irrelevant. I an only giving my view on why the tax payers of Europe are on the hook for the biggest bill in history. Fear the banks would have severely damaged Germany. They used there clout cleverly.
Shayno, many of the bondholders are not private banks but the pension funds of ordinary hardworking people, including many Irish. Think about that if you or your company pay into a pension.
Avina, You are right. And yes I’m sure my pension fund has a small percentage in high risk with better return. That is the gamble we all take. If you want better return you take a bigger risk. That’s why most pension funds only commit a small amount to such investments. Again I have to say my personal or your personal circumstances shouldn’t affect what we know to be right or wrong. That would be to distort a situation for vested interests. Just like the EuroGroup are doing. It’s called gambling for a reason.
I agree Shayno, but the point I’m making is that the weary narrative that this is about the 1% being protected at the expense of the 99% isn’t really an accurate reflection of the true situation.
Shayno, Germany reformed post war. Greece didn’t. Germany reformed against post re-unification and this was particularly painful. Greece continued as before. As for the banks being private so what? The private banks contain your money and mine as well as the money of businesses large and small on deposit and in current accounts. The notion that because a bank is private it can be allowed to be stiffed or to fail and that this has no implications for the nation or broader economy is risible. If the bank was in public ownership the exact same would apply. However, you real point is I presume that private banks are not like any other private business. They should be very heavily regulated and should not be allowed to engage in currency speculation or other risky activities. The German banks should have been more prudent you are correct but this does not absolve the Greeks from the bulk of the responsibility. One of the great untold stories is the sheer incompetence of many German banks in lending German surplus cash to other banks and Governments. This story will eventually be told and history mayhave a different take on this saga.
Avina, you’re right, there is a misconception about the 1%. If you use a global wealth calculator you will find that anyone earning over 30/40k is in the 1% bracket. The group people really have a problem with is the 0.01% bracket. these are the people that have the power to manipulate all systems at all levels. And they evidently do. For what can only be described as pure greed at the point. Their world is a playground. For most it is a battleground.
Varoufakis done a swift exit his wife didn’t even get a chance to get her helmet on probally gone back to America
That lad thinks he’s a rock star, driving off into the sunset with her blonde hair flowing in the wind.
“Greece needs billions and has until midnight to get it” … That’s kinda like my own situation.
Drugs?
Europe says jump, the Greeks say oxi.
They need a long-term restructuring of their deb, and this right wing Irish government show solidarity to the people of Greece.
Are you joking? This government can’t stand up for our people let alone Greece
They can get a long-term restructuring Peter. They are unlikely to get a write off which would crystallise the debt for other member states. But that is not the issue. The issue now is that nobody in ANY EU govt trusts the Greeks to deliver on anything. This is an unparalleled achievement by the Greeks. They have tossed all their goodwill out the window by engaging in macho political posturing instead of persuasion. That is why Governments have a diplomatic corps. It has been an astonishing example of how not to do your political and administrative business. The problem is that they got away with non-delivery for decades but the chickens have now come home to roost because other member states are on the hook for billions and cannot see any light at the end of the tunnel. In other words EU Govts believe that no matter what they do the Greeks will be back for more.
The deadline is meaningless – they will just impose another deadline tomorrow until they get the answer they want
It’s the fiiiinal countdown.. Do de do doooo do de do do dooo do de do doooo do de d’d'd’d'doooo de de doooo de de do do do deee doooooooo do de dooooooooo..
Which one?
Greece is on the brink of meltdown, millions of living, breathing real, actual people are in serious distress and the best you can do is some juvenile jibe? Grow up.
I will not grow up. The cheek of you to tell me to do something.
The Greeks need to look in the mirror….a small percentage pay tax while roughly 50% of their population are on a pension….
This will be pushed down the road some how. But the fundamental flaws within the currency will remain. Only a matter of when, not if the Euro fails. Germany will accept a Greek exit. France and Italy won’t. And of course USA wants them to stay within. The all fair the ghostly figure that is Russia on her borders. These are the big players. And Noon an and Co have very little influence. That was clear when we were squatted with huge debt and told piss off. Will be not good crying from the roof tops Mr Noon and Fg when the horse has bolted.
they never paid there taxes, it’s different to the Irish who paid taxes but our government messed up…30%of resturants never paid any tax for years..let them rot.. they will never pay any loans back.
Take a long hard look at this situation, and remember this is how Ireland will end up if a certain political party ever gets power…. I will let you all work it out.
More deadlines given than Irish water. Plaster will be applied, but problems will resurface when it falls off down the line. Inevitable…
European very long term loan deal “take one” ..
The Greeks are 100% right in putting their people before Criminal EU Neo Liberal parasites and banksters.
You are of course correct Joseph O’Regan. We will see if youhave the same view when the consequences for Greece become clear. The moral high ground is a very lonely place. Pragmatism, good relationships, dealing respectfully with other democratically elected leaders and admitting your own culpability in the ongoing debacle would have served the Greeks far better.
satisfy international lenders ,nothing about human beings. time these were taught a lesson.like enda they have a terrible attitude towards people wanting a life,after all we are only here once and it is not to serve dictators. all the best Greece.
I love the way the EU can shower money on Ukraine to fund the chaos is the eastern regions and at the same time as funding chaos they very kindly send aid to the people affected by the chaos they paid for, this is one example of the bungling EU idiots who control the purse strings of our money. I hear today the EU is handing out cash and vouchers to Ukrainians affected by the disaster paid for by EU, it’s total madness that a non EU country can be given so much EU money but a current EU member state is left to rot because the EU do not want to deal in a civilised way with the new government who are not responsible for the massive financial problem the Greeks find themselves in today.
What a joke the EU has turned out to be, unity me azz.
In fairness I think the people in Ukraine are a fair bit worse off than the people in Greece. In fact the people in several EU countries that are owed money by Greece are a fair bit worse off than the people in Greece.
The Greek people are not responsible for the current mess, please lay the blame fairly and squarely where it belongs and that is on the heads of the previous Greek Gov’s who funnily enough were able to squander billions over the last five years all the time while being under the administration of the troika.
The ordinary Greek should not be made to suffer for electing a government the EU don’t like and would like to have replaced asap as Martin Schulz suggested last week.
The Greeks are in charge of their destiny. Unlike ukraine which s invaded by russia.
- they votes no to the last offer from their creditors
- now they need to take next step and leave the euro
- initially they will issue iou to civil servants , pensioners etc. these will devalue immediately effectively cutting the wages bill.
- they will get drachma back and control of their economy. They can run a parallel currency euro.
- write off all debts
- the drachma will devalue making greece the cheapest tourist destination in europe.
- slowly economy will recover
Kevin, I agree with all points made except the hilarious one where you say Russia invaded Ukraine. Lol
btw, why do you say its hilarious that Russia invaded Ukraine? Its pretty much indisputable, certainly in the case of Crimea.
Kool, that’s how democracy works. You vote in a government and you’re ultimately responsible for what it does, good and bad. Everyone in Greece benefited to a greater or lesser extent from the decades of overspending and under-taxation, and everyone kept voting for it.
Unfortunately that’s one of the problems of democracy – populism will always win out over prudence. Ask a kid does he want an ice cream or some broccoli and what do you think the answer will be?
the most interesting thing is the imf will not declare greece in default despite their referendum. that seems to have escaped most of the media.
were they to it would set off a mountain of credit default swaps and i suspect the contagion would start from there with one body after another going bust and setting off more cds.
things are about to get very interesting.
It’s the final countdown ….. again zzzzzzzzzzzzzzzzzzzz
I’m loving the Acropolis Now hashtag Paul.
I must admit that I haven’t a clue about banking, so a lot of what’s been going on in Greece has gone over my head, but I thought this present Government’s whole thing was they were looking for write downs on debt their people didn’t ask for. So why is another bailout on the cards?
BBC reporting that the new proposals actually are taking several Billion more out of the Greek economy than the proposal rejected in the referendum
The game is up for Syriza.
They tried to call the EU’s bluff, but it was called.
They spent a week before the referendum expecting a yes vote to take the decision out of their hands, that much is perfectly clear now that they didn’t even have a proposal ready for Tuesday.
If they were so certain of a No vote, they would have prepared a new proposal based on that.
They didn’t have anything ready, showing that they thought there’d be a Yes and it would simply be the original proposal.
With the banks empty, they are now panicking.
All of their own making.
No one else is to blame except themselves.
If the Greeks get another bailout then the finance minister may change his name to Euclid Winthelotos!!!!
Will the Germans do a U turn on Sunday and give in to the Greek demands.
The alternative would be Deutsche Bank going bust on Monday if the Greeks default
Greece, the problem child of the EU. I wonder how much would have been achieved for the other Countries if the focus was not on the temper tantrums of Greece.
My heart is with the Greek people tonight .. Think it’s time for Europe to wake up and stop this economic war …..
Send them some cash to help them!!
Yes I’m going to set up a group fund page dick ,
Japers, have an entire people ever been so punished because “Marcel Wave ” aka Djieselbloom, Juncker, old Uncle Tom Cobley and all, just because they didn’t like the cut of the jib of the “radical left wing party ” they had the cheek to freely elect? Hurrah for the rabid right wing, hurrah for poverty, let the plunder continue. After all, the hedge funds REALLY want those hotels, monuments, beaches and ports. They deserve them ‘because they’re worth it ‘. Just think, the Greeks can become tenants and spailpeen fhainach in their own land too! Over and out.
Project Zeus from Peep Show
Whats the point of staying in this corrupt organisation, why should we stay?
Paul Murphy TD isn’t happy.
Solidarity does not mean passive support – it means telling the truth to those you are in solidarity with. Right now, the Syriza leadership appears to have made a decision that, if implemented, would be a disaster for working people in Greece and for the left in Europe. We should raise our voices again in solidarity with those in Greece who continue to say Oxi to austerity!
It seems that the Syriza leadership has agreed to implement a significant austerity package and will try to pass elements of it in the Parliament tomorrow. They are doing it in the hope that then the German government and the Troika will give some concessions on debt relief on Sunday and allow them to stay in the euro. Even that is not guaranteed. The EU leaders could let them do it, knowing they are undermining Syriza in the eyes of the Greek people fatally, and then refuse any deal to humiliate them further.
The Greek people did not vote on Sunday to say No to one austerity programme, only to have another (possibly worse) programme forced upon them. They did not vote No to austerity, but Yes to staying in the eurozone. They voted No to austerity. That is the mandate of the Greek government, even if it means rupture with the eurozone and the capitalist system.
More…
I stand with those who mobilise in the next days to again stop austerity. I hope that the left within Syriza, which is substantial, refuse to be blackmailed – vote No, leave the government if it is passed and call people out to protest.
Solidarity. Rupture. Oxi.
Paul isn’t a happy camper at all.
Has reality finally bitten for Syriza?
They can’t, one one hand bite the hand that feeds it, and on the other demand more money.
Life doesn’t work like that.
Paul has been supporting a political ideology, rather than the Greek workers.
The very workers that have spent the past 2 weeks in a financial doldrums because of the idiocy and arrogance of Syriza, the party that Paul, the AAA and SF have supported up till tonight.
I’ve continually pledged my support for the Greek workers on this site, their right to their own money.
Syriza, Paul, SF and the AAA supporters on here have continually pledged that they were on the right road.
Even when it was pointed out that it wouldn’t end well for the Greek people, they still clung onto that failed philosophy that they were 100% right.
The Greeks need more money, as they spend more than they take in.
It’s not rocket science, yet Paul, the AAA, and SF have tried to throw the blame on everyone rather than Syriza.
Greece was on its way to recovery.
They might well have had a right down in a year or two.
Until that is, Syriza threw the toys out and alienated themselves
Paul wants economic anarchy.
It’s the only way that his followers will ever get the return to communism that he so desperately wants.
This is why he emphasises Fracture in his post.
He wants the economies to fail. He wanted the Greek economy to fail, regardless of the consequences to the Greek people.
This is why he was in his element for the past 2 weeks and also now, why he is so disgusted at the outcome.
Elbow Greece needed?
From “Greece needs billions” to “hours away from deadline to submit reforms ” Misleading headline much?
Headline now changed
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