In his letter to the president of the Eurogroup, Prime Minister Alexis Tsipras asks the European Stability Mechanism be added, taking into account the “urgent financial problems” that Greece faces “in the second half of 2015 and around the year 2016 “.
In four points, the letter signed by the head of the Greek government appoints the factors that” should “the need for financing” urgent “. The first is the “absence of disbursement of the second program since 2014″. The government also points out that “the Republic does not have access to market financing, according to the meaning of Article 1 of the treaty of the European Stability Mechanism.”
The other two reasons seek to somehow blame the European bodies, saying “the program expires on June 30 and the application for extension to complete the pending negotiations was not accepted”.
We read in the letter that “the ECB does not extend the Liquidity Assistance Emergency, “with a note still saying,” Moreover, the Greek financial system is necessary to maintain the stability of the euro zone. “
” Given that today, June 30, 2015, is the deadline set in the Eurogroup statement of 20 February 2015, to reach an agreement, Greece requests financial assistance from the European Stability Mechanism in the form of a two-year rescue, “said the letter shall make the Jeroen Dijsselbloem.
Athens undertakes to use the funds that will be calculated “exclusively for debt service, both in external and internal obligations”.
“In conjunction with the loan, the Greece asks the EFSF (European Financial Stabilization, to design and redesign the debt profile in the spirit of European Commission proposals to make it sustainable in the long run, “said Alexis Tsipras.
Finally The Greek prime minister calls for the current unlocked the rescue funds, calling for an “extension for a short period” in order to prevent “trigger a default process,” given that to date the Mayan night, Athens would have to deliver 15 500 million to the IMF.
Before you sign the letter, Tsipras ensures that “Greece is fully committed to the external debt service in a way that ensures the viability of the economy , growth and cohesion “.
Negotiations
The proposal will be discussed at an extraordinary meeting today to 18.00, a teleconference between finance ministers eurozone, said the President of the Eurogroup Jeroen Dijsselbloem.
What suggested the president of the European Commission?
Jean-Claude Juncker has proposed to the Prime Minister Greek A last-minute deal, the creditors accept “close” if Athens commit today to accept the latest proposal and campaign for “yes” in the referendum.
The proposal of creditors to release money to Athens is Saturday and includes – among others -. increases in VAT on various products and services, reductions in pensions, gradual end to early retirement and increasing the pensionable age
The theme of pensions was which created more tension between lenders and Athens, and the problem in this case is mainly the so-called ‘Ekas’, the solidarity surcharge for pensioners, lenders do not consider a retirement pension because they do not depend entirely made of discounts and want it to be deleted.
Since the debt restructuring, the government mainly supported by left-wing party Syriza has claimed, not part of the proposed package.
Community sources said the creditors have indicated to the Greek executive who would be available to discuss a debt relief, which represents about 180% of gross domestic product (GDP), almost double the wealth produced by Greece, but only when negotiating a third rescue the country .
The promises of Tsipras on television
Prime Minister assured last night that will respect the outcome of Sunday’s vote and leave government admits . Tsipras says it is impossible to pay today to the IMF to EUR 1.5 billion.
“The decision of the Greek people will be respected and implemented.” The promise was left by Alexis Tsipras, assuming that it dismiss the case Sunday’s referendum dictate the victory of yes to the proposal of the creditors submitted to the government which provided for increased austerity measures, such as the rise in VAT. In an interview to a Greek television, Tsipras said he was not “a prime minister who remains in office come rain or shine.”
The leader of Syriza, which sees the referendum as a way to continue negotiations – “our goal is to be better armed in the further negotiations” – believes that the stronger the rejection of the proposal, the stronger will be in Greece for the next talks
The prime. Greek Minister was also adamant about the impossibility of paying the country today 1.5 billion to the IMF. “It is possible that lenders expect us to pay the IMF imposed when choking banks?” He asked, adding that “from the moment they decide to raise the choking will be paid.” With banks closed until July 6, Tsipras admits that “the scenario is not ideal,” but stressed that Greece “will survive” with or without external aid program. “The Greek people saw that the last five months did what we could to reach an agreement,” he said, stressing he does not believe that lenders want Greece to leave the euro zone.
ECB charges : it is the fault of the Greeks
The European Central Bank does not exclude the Greek exit from the euro zone and insists that occur will be the responsibility of the Greek Government, which decided to end the negotiations, he said Benoît Coueuré, ECB board member.
“The Greek exit from the euro zone, which was a theoretical hypothesis, can unfortunately no longer be ruled out,” he said in an interview published today by the French business daily Le Echos .
Coeuré, adding that “is the result of the Greek government”, insisted that both the ECB and the European authorities want to keep Greece in the single currency and that, therefore, made their proposal in Last week, it specifically lowered the requirements in terms of fiscal surplus.
“The decision to discontinue the negotiations was made by the Greek authorities. Surprised us because we were finished quite intense and fruitful exchanges, “he said.
Coueuré proved to be convinced that the Greeks vote” yes “in the referendum of 05 July,” the eurozone authorities will find a way “to start up an aid program, although the current expires today.
The head of the ECB acknowledged that the executive Alexis Tsipras had made the restructuring of Greek debt a priority, but claimed that since February 20 the Eurogroup had warned that this matter would only be debated in a second phase and before Athens had to adopt “a credible reform program”.
Regarding the possible consequences of a Greek exit the single currency, Coeuré admitted that the market turmoil on Monday shows that there was a “surprise effect” because until Wednesday did not admit the rupture of negotiations.
However, Coeuré found that the reaction was “relatively moderate”, demonstrating “the extent to which Greece is a unique case”, “the euro zone resilience to external shocks” and that “safety nets put in place in recent years have fulfilled their role.”
In any case, Coeuré said it was necessary to maintain “vigilance”.
“If there are risks we are willing to use the tools at our disposal” as the massive program of buying bonds and even “new instruments as part of our mandate,” he said.
An injunction
Greece does not rule out the possibility of recourse to justice to prevent its exit from the euro zone in the event of a settlement fail. “The Greek government will make use of all legal rights at their disposal,” the British newspaper Daily Telegraph, citing Yanis Varoufakis.
“We are advise us and we will certainly consider the possibility of an injunction from the European Court of Justice. The EU treaties do not provide [a] exit from the euro and refuse to accept it. Our belonging [to the area] is not negotiable, “he said.
IMF does not receive today
The Greek Finance Minister, Yanis Varoufakis, confirmed today that Greece will not repay the loan of approximately 1,600 million euros to the International Monetary Fund (IMF), which expires today.
Varoufakis was asked by journalists who were waiting at the entrance of the Finance Ministry in Athens . “No,” replied tersely, before entering the ministry.
Earlier, Deputy Minister of Finance Greek, Nadia Valavani, had stated that Athens would not repay the loan of some EUR 1,600 million the IMF unless it were found a last minute solution that would meet this payment and avoid getting into “default”.
Valavani said today in a statement to state television that the payment would still be possible if Greece could 1,800 million euros of Greek debt securities income 2014 in the hands of the European Central Bank (ECB).
The minister insisted that to make the repayment would not need a new agreement with the institutions (European Commission, ECB and IMF) as part of the current bailout program.
Up to 18:00 in Washington (00:00 in Lisbon), Greece can make this repayment grouping three payments June, otherwise will default in relation to the IMF.
If Greece does not pay today, you start a processing process, which, as recalled Valavani, can last a month until the failure is declared .
Once it is confirmed that Greece did not pay, it is expected that the director general of the IMF, Christine Lagarde, inform the Executive Board of the institution, possibly the same day.
A crucial day for the liquidity of Greece will again be Wednesday, when it is expected that the ECB Governing Council decides to maintain the emergency credit provision to Greek banks.
Rajoy supports resignation of the Greek government
The Spanish prime minister hopes the victory of “yes” in Sunday’s referendum in Greece on a Greek government arrangement with creditors, and a new government in Athens.
Mariano Rajoy has now become the first European leader to openly support the resignation of radical left-wing government in Greece, by appealing to the Greeks to accept austerity measures in Sunday’s referendum.
Rajoy said that the victory of “yes” in the referendum would be good for Greece, because it would allow creditors to negotiate with a new government in Athens.
“If (the Greek prime minister ) Alexis Tsipras lose the referendum, it would be better for Greece, because to say “yes” to maintain the eurozone, the Greek people allow negociássemos with another government, “Rajoy told the Cope radio.
In case of victory of “no”, the “Greece will have no choice but to abandon the euro,” said Rajoy, whose party is currently facing a rapid rise in Spain’s new radical left party “Podemos`, a close ally of Syriza, led by Tsipras.
In Italy, Prime Minister Matteo Renzi said that structural reforms, adopted by Rome, put the country “out of the firing line” of the consequences of the debt crisis in Greece .
“We take with courage the path of structural reforms, the economy is in recovery process and under the protection of” umbrella chuva` the European Central Bank, “Renzi said quoted by the business daily Il Sole 24 Ore, on the contagion effect of the Greek crisis to other economies over-indebted eurozone in 2011.
At the risk of contagion of the Greek crisis to members of the eurozone to be no more a threat , Renzi said the “concern not just in Italy, and concerns now the global difficulties scenarios that may arise.”
Asked about the tough stance of Germany in the negotiations of the Eurogroup that ended with the refusal to extend the bailout program for Greece, Renzi said any effort to blame Berlin for the situation “is a convenient alibi that does not correspond to reality.”
“Now the risk is that the referendum becomes a choice between (German Chancellor Angela) Merkel and Tsipras. That would be a mistake, and that’s what Tsipras wants. It is no coincidence that the victory of Syriza in the elections was due more to talk about Mrs Merkel than Greece, “he added.
On the other hand, the Austrian Finance Minister Democrat Jörg Schelling said today in Vienna that the decision not to extend aid to Greece is a “kind of release blow” to the Eurogroup.
In statements made before a meeting of the cabinet, Schelling confirmed the Eurogroup remains “open” to new negotiations with Athens, but warned that the situation was “disoriented”.
Merkel does not close doors
German Chancellor Angela Merkel said today that does not know any new European proposal for Greece to unlock a last-minute deal.
“The Commission’s latest offer I know of is the last Friday and I can not say anything more” said Merkel, after Brussels have said that proposed a solution of “last minute” to the Greek prime minister, Alexis Tsipras.
However, the German leader reiterated that “the door remains open” for further negotiations with Athens.
(updated News at 18:49)
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