Euro Leaders agreed to give Greece a chance to submit new proposals by 8:30 a.m. Friday, July 10th. Two days later, a full Summit with all 28 European Union members will take place. A crucial decision will be taken: “to start negotiations for a two-year program,” as Merkel said or “proceed with Grexit” as Juncker threatened. But no worries: the EC President promised also “humanitarian aid”!
Prime Minister Alexis Tsipras committed to present a new request for a programme within the framework set by the ESM Treaty, incl. strict policy conditionality.
There have to be detailed proposals both short & medium term.
EC President Jean-Claude Juncker:
This evening we have not found a solution. Last week I said a NO would weaken the Greeks, they were very much weakened this evening.
Debt restructuring not on the table until October
*ECB commitments will depend on Greek commitments by Friday morning at 0830
We have a Grexit scenario, prepared in detail
Chancellor Angela Merkel
I am not exaggeratedly optimistic of a solution to rescue Greece on Sunday but the summit had been called “because we think the situation is so dangerous”.
Asked if Greece could crash out of the euro zone if it failed to put forward convincing reform proposals, she said Sunday’s summit would decide whether to open negotiations on a two-year programme for Athens.
Countries outside the eurozone want to be in on these discussions, says Merkel, explaining reason for EU-28 summit
if Greek reform proposals are satisfactory and prior actions taken, short-term finance can be provided
Short-Term Mechanisms can be discussed once overhauls agreed, would be yied to implementing prior actions on overhauls
A haircut is not up for debate. That is a bailout under the treaties and that will not happen.
Bridge financing didn’t play any role in our talks tonight. It was whether there can be a 3rd programme
Preconditions for resumption of ESM program still not there at close of summit.
There was no discussion on introduction of alternate currency for Greece.
*ECB to keep Greek banks afloat till Sunday
EUCO President Donald Tusk
Tsipras is committed to present a new request for a programme within the framework set by the ESM Treaty, incl. strict policy conditionality
If can’t find consensus “will mean the end of negotiations with all the possible consequences including the worst case scenario
final deadline for Greece is Sunday
Greek bankruptcy would affect all Europe but Greece most worst. We have only five days left – this is a final deadline
Euro area authorities stand ready to do whatever is necessary to ensure financial stability of whole euro area
optimism for an Agreement by end of the week, despite ‘Euro’ Cassandras
* So much for ECB’s independence
“European Central Bank chief Mario Draghi assured euro zone leaders on Tuesday the ECB would do the necessary to keep Greek banks afloat until an EU summit on Sunday that will seek a deal on further aid to Greece, German Chancellor Angela Merkel said.“
PS it’s too early Wednesday for a comment… except: Milk, Sugar or Black?