1:20 p.m. – “Reforms implemented quickly are the key to everything” (Moscovici)
The rapid implementation of reforms Greece is “the key to everything” to reach an agreement that would provide for the financial survival of Greece, said Saturday the European Commissioner for Economic Affairs Pierre Moscovici.
“We need reforms implemented quickly (in Greece, ed), it’s the key to everything (…) to unlock a program to address the issue of debt,” said Mr Moscovici on his arrival a meeting of finance ministers of the euro area crucial for the future of Greece.
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1:20 p.m. – Bilateral meeting between the Greek and French Ministers, before the Eurogroup
A bilateral meeting between the French Finance Minister Michel Sapin and his Greek counterpart, Euclid Tsakalotos, to be held Saturday at noon, ahead of a special meeting in Brussels to avoid a Greek exit from the euro, said a European source close to the negotiations.
This meeting will take place “in a moment”, told AFP a source close to the negotiations, about two hours before the start of the Eurogroup devoted to the fate of the Greece.
According to corroborating sources, diplomats and senior French Treasury officials are enabled to play behind the scenes in recent days the “dashes” to face Greece to its creditors.
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1:15 p.m. – IMF: Christine Lagarde expects “much progress”
The IMF Managing Director Christine Lagarde said he expected “significant progress” for the release of a new aid package for Greece, likely to avoid an output of the countries of the eurozone, on his arrival Saturday in Brussels for a crucial meeting of finance ministers of the euro area.
“We are here today to make a lot of progress,” Lagarde said, while the Eurogroup must render an opinion on the new reforms proposed by the Greek government in exchange a third aid program.
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24:22 – The outcome of the Eurogroup on Greece is “totally open” according Berlin
The outcome of the meeting of Eurogroup which will be devoted to the reform proposals of Greece, on Saturday afternoon in Brussels, remained “totally open”, said Saturday morning the spokesman of the German Ministry of Finance, tempering the optimism.
He declined to comment on an article in the Bild newspaper, according to which the German Finance Minister, Wolfgang Schäuble, considers the latest proposals of Athens, submitted Thursday night, ‘inappropriate’ and s’ opposes new negotiations.
“The Minister will discuss this afternoon with colleagues in the eurozone the recommendation made by the institutions,” said the spokesman of the Ministry Frank Paul Weber. “The outcome of the discussions is fully open,” said he said.
The Eurogroup meets in Brussels at 15:00 (1300 GMT) to discuss the assessment made in on the proposals of Athens by the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF).
From sources close to the negotiations, it said Saturday morning in Brussels have serious doubts about the demands of Greece’s bailout plan, adding that an agreement to restart negotiations was far from certain.
A source, which Reuters said Friday night be virtually certain that an agreement would be found on Saturday, said in late morning no longer be safe, at four in the beginning of the Eurogroup meeting.
“The high level of funding needs for the next three years is perhaps too large and too brutal,” said a source.
The Greek prime minister, Alexis Tsipras, has requested assistance of 53.5 billion euros over the next three years. Experts, themselves, believe that Greece will need a total of € 82 billion to meet its obligations, it is said source familiar with the discussions.
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10:58 – The euro zone has the fate of Greece in her hands
The euro area should make Saturday a decisive opinion on the plan Greek reforms. Despite the divisions, it raised hopes for an agreement on a new aid plan in Athens could avoid a Greek exit from the euro zone.
The finance ministers of the euro zone meeting in Brussels will examine from 1300 GMT the latest proposals made by Athens, including on VAT, pensions and privatization, which could lead to a bailout plan for Greece valued to 74 billion euros at least, the third since 2010.
Already welcomed by the creditor institutions, this plan could, if it gets the green light of the Eurogroup, provide the basis for a new round of negotiations would be approved Sunday by the 28 countries of the European Union, met in summit.
Until then, the 19 states of the euro zone will have overcome their differences if the more conciliatory, starting with France, deem credible proposals Athens, he will convince the camp hard, led by Germany and reluctant to grant new aid to Greece, . after two planes in the amount of EUR 240 billion
Even if Greece and its partners agree this weekend, everything will be played: at least eight Parliaments must give their approval to the aid package, even before the German Bundestag vote twice.
50% chance
” The question now is to convince the toughest, Germany, the Baltic countries, “confided a European source close to the negotiations.
For Dalia Grybauskaite, the President of the Lithuania, the last country to have joined it six months ago the euro area, there is also “50% chance” of reaching an agreement this weekend – and only on condition that the Greek text is “profoundly changed “
The three creditor institutions of Greece. – European Union, European Central Bank and International Monetary Fund – have studied the text, which they deemed” positive “according to a European source before transmitting their opinion to the euro area.
On the night of Friday to Saturday, the Greek Parliament gave its green light to the radical left government of Alexis Tsipras to negotiate this new plan. Despite the massive victory of the No 61% during the July 5 referendum, Parliament broadly endorsed the proposal, which is broadly in line what so wished creditors on most sensitive issues.
Alexis Tsipras urged members to authorize it to negotiate the plan, recognizing that the government had made “mistakes” that the text was “very remote” promises of the left coalition Syriza, but it was ultimately the best, causing many defections in its majority.
“No turning back” headlined Saturday the Greek daily Avgi, the showcase of Syriza, while the right-wing newspaper Eleftheros Typos demanded “What Greece is saved”.
Seven to eight thousand people have also demonstrated Friday night in Athens to express their dissatisfaction against that they regard as a betrayal, while activity in the country is slowing since the closure of banks and the introduction of capital controls, June 29 “Syriza supports capitalism,” accused a banner.
The closing of Greek banks is expected until Monday but the Deputy Finance Minister Dimitris Mardas suggested Friday it could still be extended, with amenities.
And now, the debt
This allowed the Greek Government keep your head up, after all, was the hope expressed by Alexis Tsipras finally see open “a serious debate on the debt restructuring” Greek, which reaches 180% of the country’s GDP, or 320 billion euros .
The subject divides Europeans but Athens insists on the issue, with the open support of France, the IMF, the European Council President Donald Tusk and many economists.
Berlin Friday saw “very little wiggle room” to restructure the debt. Nevertheless, a kind of advanced compared to Thursday when Chancellor Angela Merkel had said that a reduction of Greek debt was “out of question”. The most likely option is that of a “light restructuring” of debt.
The new Greek Finance Minister Euclid Tsakalotos said for his part that “many requests Greece on the debt will be accepted “, citing an exchange of 27 billion euros of bonds between the ECB and the European Stability Mechanism (ESM), long advocated by the Greeks, which would allow him to avoid the pitfall of over 7 billion euros to repay to the ECB in July and August.
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8:22 – The plane voted Tsipras, the willing creditors
The Greek Parliament has given in the night from Friday to Saturday the green light to the proposed agreement submitted to the creditors of the country by the government of Alexis Tsipras, who however recorded the defection of several members of his party, according to the count of the meeting. The Prime Minister, who had made the vote a choice of “high national responsibility”, collected 251 positive votes out of 300 MPs to go negotiate Saturday with the country’s creditors (EU, ECB, IMF) on the basis of the proposal he had put on the table Thursday night. But he recorded defections ten members of his radical leftist party Syriza who abstained or, for two of them, voted against the agreed plan.
Redesign can
Of the eight voters are three personalities of his majority: the Energy Minister Panagiotis Lafazanis and the Minister for social insurance funds Dimitris Stratoulis , the Eurosceptic wing Syriza and Parliament Speaker Zoe Konstantopoulou third character of the state. Several Syriza MPs were also absent for the vote, including former Finance Minister Yanis Varoufakis, so that the text was adopted with the votes of the opposition socialists and conservatives in particular, since the government majority comprises 149 MPs Syriza and 13 deputies from the small right-wing sovereignist Anel, the latter having voted for the proposed agreement.
Political commentators believe that Saturday morning that these defections within the majority could lead to political changes, perhaps in the form of a cabinet reshuffle. Alexis Tsipras, while defending the package of measures proposed by the government, had admitted, in front of parliament, they were “difficult” and away from the election promises of the radical left.
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