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Greece bailout talks: markets surge on rumours of German compromise Apparent softening of Berlin’s stance towards Athens cheers investors keen to see sustainable rescue after months of wrangling by Phillip Inman, Economics correspondent The Guardian, June 10 <http://www.theguardian.com/business/2015/jun/10/greece-bailout-talks-markets-surge-on-rumours-of-german-compromise> Stock markets surged on Wednesday after reports of a German proposal to allow Greece to receive a drip-feed of loans in return for a staggered reform programme. The softening of the German stance towards Athens cheered investors keen to see a sustainable rescue of the debt-stricken country after more than four months of wrangling. According to the reports, the chancellor Angela Merkel is prepared to accept a much-reduced reform programme, slimmed down to just one or two areas as part of an initial package, to salvage a deal with Greece and prevent it exiting the eurozone. . . . The European commission, the International Monetary Fund and the European Central Bank, which have lent Greece €240bn (£175bn) between them, had until recently demanded all-encompassing reforms in return for the last tranche of bailout funds worth €7.6bn. News agency Bloomberg said it spoke to at least two German officials close to the bailout talks who described the compromise deal as a possible way to end the impasse between the radical leftist Greek government and its creditors. The report, later denied by the German government as official policy, followed statements by Merkel and the French president, François Hollande, that they were ready to meet Greece’s embattled prime minister, Alexis Tsipras, at a summit in Brussels. Merkel said a solution was possible as she arrived for a summit of EU and Latin American leaders, just hours after the European commission dismissed the latest Athens plan, saying it failed to address the need for deep changes. “The goal is to keep Greece in the eurozone. I always approach these things with the attitude, if there is a will there is a way,” Merkel said as she arrived in Brussels. Europe’s most powerful leader said she was available to meet the radical leftist Greek leader on the sidelines of the summit as he had earlier requested, and Hollande said he was willing to do the same. There had been doubt earlier about whether a meeting would take place, after the European commission rejected the latest Greek proposals as inadequate as a basis for new talks. . . . Germans May Have Found Way to Break Greek Deadlock by Katerina Papathanasiou The Greek Reporter, June 10 <http://greece.greekreporter.com/2015/06/10/germans-may-have-found-way-to-break-greek-deadlock> Although Germans remain persistent regarding Greek reforms on taxes, state asset sales and retirement benefits, German Chancellor Angela Merkel appears to be more flexible in unlocking further financial aid to Greece if the country decides to initiate at least one major overhaul, two anonymous sources close to the German government told Bloomberg. If Greek Prime Minister Alexis Tsipras is willing to take immediate action, liquidity could be released in early July, the sources said, without giving further clues though about which measure should Greece take in order to convince its international creditors. . . . ECB Increases Greek Banks’ ELA by a Hefty 2.3 Billion Euros by A. Makris The Greek Reporter, June 10 <http://greece.greekreporter.com/2015/06/10/ecb-increases-greek-banks-ela-by-a-hefty-2-3-billion-euros> The European Central Bank (ECB) is said to have significantly increased the ceiling of emergency liquidity assistance (ELA) provided to Greek banks on Wednesday by 2.3 billion euros. According to Greek media, during a teleconference of the central bank’s board, it was decided to raise liquidity to 83 billion euros from 80.7 billion. The situation will be re-evaluated next week. Head of Parliament’s Budget Office Testifies in Bailouts Probe, Sees ‘Memorandums’ Until 2018 by A. Makris The Greek Reporter, June 10 <http://greece.greekreporter.com/2015/06/10/head-of-parliaments-budget-office-testifies-in-bailouts-probe-sees-memorandums-until-2018> Greece will most likely remain under “memorandum” regimes until at least 2018 unless there is an “honest agreement” with its creditors, the head of the Greek Parliament‘s Budget Office Panagiotis Liargovas said on Tuesday. He was testifying in an ongoing Parliamentary inquiry examining the conditions that led Greece to accept bailout memorandums in 2010. “Perhaps a different honest agreement with our partners could create the conditions that allow us to gradually — because these things cannot be done in the short-term — return to the market,” he said. In this case, Greece might be able to raise the money to cover its needs at a sufficiently low interest rate, he added. “We cannot borrow [from markets] because the spreads are very high, they are forbidding,” he stressed in response to a question by opposition Potami MP Giorgos Amyras. He pointed out that Greece will need between 30 and 40 billion euros to cover its needs until 2017 and, unless it was able to generate these funds internally, it would be forced to borrow this money from abroad and was thus dependent on its international creditors. Parliament Vice-President: I Will Not Vote for Painful Measures by A. Makris The Greek Reporter, June 10 <http://greece.greekreporter.com/2015/06/10/parliament-vice-president-i-will-not-vote-for-painful-measures> We are entering the final stretch with the worst public image,” SYRIZA deputy and Greek Parliament Vice President Alexis Mitropoulos told ANT1, stressing that at this phase “we have to tell our people honestly that we will implement a memorandum.” Mitropoulos also expressed doubts whether this deal will be approved by the Parliament, adding that he will not vote for painful measures. “After ruling out the possibility of a rift, the Greek government will have to tell its people that most memorandum laws will have to be implemented,” he noted. “The government has opted for an agreement which will be harsh, so the government will implement painful measures, and the prime minister will have to give more details on how he will do it,” he added. Greece considering bailout extension to March 2016, source says I Kathimerini, Athens, June 10 [AFP] <http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_10/06/2015_550903> Greece is considering accepting a bailout extension to March 2016 in order to win more time to come up with a comprehensive reform plan after five months of fruitless talks, an official Greek source said on Wednesday. As part of deal to unlock sorely needed bailout cash, "we are discussing an extension of the current programme by nine months to March 2016," the source said. Greece 'ready to discuss' concessions on budget targets, source says I Kathimerini, Athens, June 10 [AFP] <http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_10/06/2015_550902> Greece is prepared to discuss possible concessions on budgetary targets, a key red line in its bailout talks with its creditors, a Greek government source told AFP on Wednesday. "It is very difficult for the Greek side to make more concessions, but we are prepared to discuss a solution," the Greek government source said. "There is no deal for a one percent surplus, but the question is on the table," the source said, referring to a budget target for 2015 that Athens has so far dismissed on the basis that it would require more austerity to achieve. _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: http://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
