The Latest: Greek debt burden up for discussion at summit

[Surya Gayatri]

Source: AP News - excite

BRUSSELS (AP) — The latest from Greece's financial crisis (all times local):

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7:10 p.m.

Another issue facing the eurozone's 19 leaders is whether Greece needs debt relief.

A draft document sent to leaders acknowledges "serious concerns" over the sustainability of Greece's debts but there doesn't appear to be a consensus on what to do.

The issue, like the idea of a temporary Greek exit from the euro, was bracketed in the document obtained by The Associated Press, meaning it was passed to leaders for their consideration.

The Greek government has made debt relief a key plank of its negotiating strategy over the past few months.

Greece's debts stand at around 320 billion euros ($355 billion), or a staggering 180 percent of the country's annual GDP. A direct cut is unlikely but Greece could get longer repayment schedules or cuts in the interest rates it pays on those debts.

Read more: http://apnews.excite.com/article/20150712/eu--greece_bailout-the_latest-8f5b93a6cb.html

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At least talks are on-going and that's a positive sign.

How utterly exhausted all parties must be running this literal 'marathon'.

Interesting blog entry from 6:50 p.m. local time.

The Greek government appears to have accepted a raft of demands from European creditors that it had previously condemned.

Among a series of proposals that made it into a draft document sent to eurozone leaders, Greece has accepted that officials from the creditor institutions will have some sort of base in Athens.

It remained unclear whether that ability "to work on the ground" will be similar to the hands-on oversight the country underwent after the country's initial bailout in 2010. Many in Greece hated what they considered foreign meddling in their affairs.

[PoliticAverse]

1. Every day this drags on their banks are still closed their economy at a standstill. n/t

[Surya Gayatri]

3. And, there is the real "Greek Tragedy...from French reports

on the ground, the poor hapless Greek people are beginning to see just what a load of codswallop Amazing Alexis and the Minister of Awesome got them to swallow.

Not only has he lost most of his credibility with the EU, his own voters are calling for the traitor's head.

I hope to god his government can survive long enough at least to see this process through.

The country is paralyzed. Hundreds of millions of €'s are going down the GDP crapper every day that passes.

[Berlin Expat]

2. Here's a list of the

"raft of demands":

https://twitter.com/tarapalmeri/status/620262473476763649/photo/1

You'll note that these items have to approved by the Greek Cabinet and passed into law by the Greek Parliament by Wednesday.

This Wednesday.

[Surya Gayatri]

4. Thanks for this.

Here's the lowdown according to France 24:

http://www.france24.com/en/20150712-live-eurozone-leaders-meet-decide-greece-fate-bailout-debt-european-union

Here are the day’s main developments so far:

* The leaders of the eurozone’s 19 members have begun talks in attempt to find a solution to the Greek crisis, with Athens on the verge of bankruptcy and negotiations for a new bailout deal stalling.

* A meeting of the leaders of all 28 EU members states scheduled for this afternoon that would have dealt with the fallout of a ‘Grexit’ was cancelled at the last moment by European Council President Donald Tusk to give eurozone leaders a last chance to strike a deal.

* Eurozone finance ministers resumed talks on Sunday morning over Greece’s application for a new bailout deal – which would be its third in five years – after discussions broke down on Saturday night.

* A draft statement issued by the finance ministers called on Greece to make significant economic reforms including to pensions, the labour market and privatisation before a new bailout could be considered.

* Finnish Finance Minister Alex Stubb said the Greek government would have until Wednesday to pass the reforms.

* Greece's parliament had already backed painful austerity measures Saturday in an effort to secure a bailout but left Prime Minister Alexis Tsipras facing a rebellion by some in his own party.

[cstanleytech]

15. The short time period is probably because they are tired of the Greek government

dragging its heels on some of the stuff like fixing their tax issue because if I read it correctly they barely collect a little over 10% or so of what they should be collecting.

[Berlin Expat]

5. And the apparent reaction

from Greece at the insistence of the creditors that Greece essentially complete nothing less than a legislative revolution is what you'd pretty much expect.

While Greece’s fate was being debated in Brussels, in Athens the ruling radical left Syriza party was exhibiting signs of disintegration. Demands that the controversial reforms be approved by the Greek government and enacted into law by Wednesday were described as “utter blackmail” by leading party members and met with stunned disbelief.

Although sources close to prime minister Alexis Tsipras said the leader was now determined to do whatever was needed to keep Grexit at bay, political tumult also beckoned. Insiders conceded that a cabinet reshuffle – removing those ministers who had refused to vote the austerity package through parliament early Saturday – could come as early as Monday.

“What is sure is that we are going to have dramatic political developments,” said Nikos Bistis, a veteran politician from the centre left. “Basically Syriza is now split in two.”

By late Sunday it had become clear Tsipras’ u-turn, accepting measures he had once furiously spurned, had produced a tectonic split with potentially far-reaching consequences. In addition to suffering an unexpected loss of support with 17 MPs breaking ranks at the weekend – defections that strip his government of a working majority – 15 other lawmakers also indicated that they would not approve the agreement in its entirety when it was brought to the 300-seat House.

The MPs, who included two ministers, said they were radically opposed to endorsing an austerity programme that was not only ideologically at odds with their own beliefs but would exacerbate “the country’s agonising and tragic social economic problems.”

The resistance raises the spectre of Tsipras being forced to call fresh elections – a move described as potentially catastrophic for the country.

“Greece can bend up to a point,” said Aristides Hatzis, a prominent political commentator. “But after that there is no bending, only breaking. The breaking point may well come when Tsipras realises he has lost most of his parliamentary group.”

The embattled prime minister will also face substantial resistance from the parliament’s speaker Zoe Konstantopoulou in getting the policies fast-tracked through the House.

A Syriza hardliner, Kostantopoulou said at the weekend:

“the government is being blackmailed. The lenders are insisting on turning the “no” [of last week’s referendum] into “yes.” I could never vote for the contents of the agreement.”

http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live#comments

[Surya Gayatri]

6. Oh, god. What have they done to themselves and by extension to the rest of Europe?

By late Sunday it had become clear Tsipras’ u-turn, accepting measures he had once furiously spurned, had produced a tectonic split with potentially far-reaching consequences.

The resistance raises the spectre of Tsipras being forced to call fresh elections – a move described as potentially catastrophic for the country.

And, Greece falls completely off the cliff into Third World-hood. The shenanigans of her incompetent leaders are leading her over.

[Berlin Expat]

7. If Tsipras

brings these proposals to the table, there are several possibilities.

The government could simply collapse.

There could be a 'no-confidence' vote leading to the dissolution of the current government.

There could be open rebellion in SYRIZA, leading to the party's splintering. It is a coalition of parties, after all.

New elections, especially at this rather crucial moment, would indeed be disastrous. Even a national unity government, let's say, with Tsipras as PM and supported broadly by the center right, might not even be enough to save the day.

Personally, I can't help but think that the creditors know full well that this wish list cannot possibly be accomplished by Wednesday. And also bear in mind that SYRIZA needs to pass and enact all these legislative acts simply for negotiations to begin.

Oy vey.

[Surya Gayatri]

8. Or, oh là là, as we say here.

[PoliticAverse]

9. Time for a new public referendum - 'submit to these demands' or 'exit the Euro'? n/t

Last edited Sun Jul 12, 2015, 04:25 PM - Edit history (2)

[Surya Gayatri]

10. Truth or dare time, Alexis...66.5% want to stay in because

they know and remember what a return to the worthless drachma would imply.

But, can the amateurish Alexis make his own party and coalition understand this?

[grahamhgreen]

11. Let's face it Goldman Sachs engineered this mess and needs to be broken up.

[Surya Gayatri]

13. Well, Greece is being encouraged to sue them for damages once

the crisis has been resolved one way or the other.

But then, all of the complicity and collusion between GS and the Greek government in power at the time would come out.

[hack89]

14. No. The Greek's engineered this mess

By enlisting Goldman Sachs help to hide their debt so they could join the Euro.

[cstanleytech]

16. Goldman just supplied a bandage to hide the wound which was self inflicted by the Greek

government over the years.

[hill2016]

17. goldman

forced Greece to borrow hundreds of billions of Euro?

How?

[grahamhgreen]

19. Read "confessions of SN Economic Hitman". They drive countries into debt in order to piratize assets

[Baclava]

12. Athens offered 'temporary Grexit' if no deal - live updates

Greece is being pushed to accept and implement even more austerity measures and reforms, or get a ‘time-out’ from the euro

http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live#block-55a2b47be4b07fc6a121fc54

[brooklynite]

18. Greek stock market and banks supposed to open on Monday...

I wouldn't get my hopes up.