Disagreements emerge among Greece's European creditors
By PAN PYLAS and RAF CASERT
Published: 31 minutes ago
French President Francois Hollande, right, speaks with the media as he arrives for a meeting of eurozone heads of state at the EU Council building in Brussels on Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Francois Walschaerts)
BRUSSELS (AP) - Greece's prime minister and skeptical European leaders sought desperately Sunday to overcome their fundamental differences - aiming to produce a tentative agreement to stave off an immediate financial collapse in Greece that would reverberate across the continent.
Facing a self-imposed Sunday deadline, the European nations using the shared euro currency were still seeking more proof from Greek Prime Minister Alexis Tsipras that he could be fully trusted to enact wide-ranging economic reforms to safeguard Greece's future in the common euro currency.
Tsipras came into the summit looking for a compromise deal.
"We owe that to the peoples of Europe who want Europe united and not divided," he said. "We can reach an agreement tonight if all parties want it."
Greece has asked Europe's bailout fund for a 53.5 billion-euro ($59.5 billion) 3-year financial package but many officials in Brussels say the figure will have to be much higher and insist on tough Greek austerity measures. This would be Greece's third bailout in five years.
Greece desperately needs help to avoid a financial collapse. The economy is in freefall and the country faces big debt repayments in the coming weeks. Greek banks have been shuttered for the best part of two weeks and daily withdrawals from ATMs have been limited to a paltry 60 euros ($67). The banks, according to some accounts, have barely enough cash to last through the week.
Chancellor Angela Merkel, however, insisted that Germany would not sway from its stance that Greece needs to do much more to get any help just to save its position in the 19-nation eurozone.
"There will not an agreement at all costs," she said, coming into Sunday's summit meeting. "Nerves are tense, but it has to be clear that the advantages outweigh the disadvantages."
Highlighting the differences within the creditors' camp, French President Francois Hollande insisted it was vital to keep Greece in the currency club and avoid a so-called "Grexit."
If Greece had to leave the euro currency "it's Europe that would go backward," Hollande said. "And that I do not want."
France is considered Greece's best friend and even helped Tsipras prepare the reform proposals that are his lifeline to getting international aid over the coming days or weeks.
"We have lost so much time we cannot afford to lose time anymore," Italian Finance Minister Pier Carlo Padoan said as he arrived for talks Sunday. "We continue to work to establish the conditions to start negotiations, which is the real target. ... It is not about closing a deal."
Yet in a sign that a dramatic Greek exit from the euro would not happen Sunday, a full summit of the European Union's 28 leaders was cancelled. Instead, the eurozone's 19 leaders, including Tsipras, were meeting Sunday afternoon to assess the outcome of the finance ministers' talks and plot a further way ahead.
Malcolm Barr, an analyst at JP Morgan, said the cancellation of the broader EU summit "suggests a clear decision against a third package for Greece is not likely at this point."
In an early morning tweet, Donald Tusk, who chairs meetings of European leaders, said the eurozone summit would start in mid-afternoon "and last until we conclude talks" on Greece.
The leaders are firmly focused on "plan A" that involves Greece living up to its obligations and staying in the euro, a European official who is close to the negotiations said. He spoke on condition of anonymity because he was not authorized to speak publicly.
The official added the hope is that there is enough progress to give the "green light" to the European Central Bank to turn up the emergency liquidity assistance it provides to Greek banks in the next day or two.
Finance ministers broke up talks Saturday after more than eight hours with Greece's creditors unconvinced that the Tsipras government could be trusted to reform the Greek economy. They want iron-clad proof that it can deliver on promises to implement tough austerity and reform measures in return for billions more in rescue money - including making pension changes and sales tax increases.
"I would like to see the Greek government take concrete actions starting tomorrow in parliament to implement measures that are needed," Padoan said Sunday. "And then to rebuild trust that would allow concrete negotiations to move forward."
Tsipras cleared one hurdle Saturday when lawmakers in the Greek parliament overwhelmingly backed a package of economic reforms and further austerity measures, in hopes that would convince European creditors to back the third bailout.
The eurozone ministers have to give their blessing to Greece's bailout request to the European Stability Mechanism. Traditionally, eurozone ministers agree by mutual consensus, though in exceptional circumstances a unanimous vote may not be needed.
Greece has received two previous bailouts totaling 240 billion euros ($268 billion) in return for deep spending cuts, tax increases and reforms from successive governments. Although the country's annual budget deficit has come down dramatically, Greece's debt burden has increased as the economy has shrunk by a quarter.
The Greek government has made getting some form of debt relief a priority and hopes that a comprehensive solution will involve European creditors at least agreeing to delayed repayments or lower interest rates.
Greek debt stands at around 320 billion euros ($357 billion) - a staggering 180 percent or so of the country's annual GDP. Few economists think that debt will ever fully repaid. Last week, the International Monetary Fund said a restructuring of debt was necessary for Greece.
___
Menelaos Hadjicostis and John-Thor Dahlburg in Brussels contributed to this story.
http://m.apnews.com/ap/db_6402/contentdetail.htm?contentguid=devk79Vl&src=cat&dbid=6402&dbname=World&detailindex=1
© 2015 The Associated Press. All Rights Reserved.
By PAN PYLAS and RAF CASERT
Published: 31 minutes ago
French President Francois Hollande, right, speaks with the media as he arrives for a meeting of eurozone heads of state at the EU Council building in Brussels on Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Francois Walschaerts)
BRUSSELS (AP) - Greece's prime minister and skeptical European leaders sought desperately Sunday to overcome their fundamental differences - aiming to produce a tentative agreement to stave off an immediate financial collapse in Greece that would reverberate across the continent.
Facing a self-imposed Sunday deadline, the European nations using the shared euro currency were still seeking more proof from Greek Prime Minister Alexis Tsipras that he could be fully trusted to enact wide-ranging economic reforms to safeguard Greece's future in the common euro currency.
Tsipras came into the summit looking for a compromise deal.
"We owe that to the peoples of Europe who want Europe united and not divided," he said. "We can reach an agreement tonight if all parties want it."
Greece has asked Europe's bailout fund for a 53.5 billion-euro ($59.5 billion) 3-year financial package but many officials in Brussels say the figure will have to be much higher and insist on tough Greek austerity measures. This would be Greece's third bailout in five years.
Greece desperately needs help to avoid a financial collapse. The economy is in freefall and the country faces big debt repayments in the coming weeks. Greek banks have been shuttered for the best part of two weeks and daily withdrawals from ATMs have been limited to a paltry 60 euros ($67). The banks, according to some accounts, have barely enough cash to last through the week.
Chancellor Angela Merkel, however, insisted that Germany would not sway from its stance that Greece needs to do much more to get any help just to save its position in the 19-nation eurozone.
"There will not an agreement at all costs," she said, coming into Sunday's summit meeting. "Nerves are tense, but it has to be clear that the advantages outweigh the disadvantages."
Highlighting the differences within the creditors' camp, French President Francois Hollande insisted it was vital to keep Greece in the currency club and avoid a so-called "Grexit."
If Greece had to leave the euro currency "it's Europe that would go backward," Hollande said. "And that I do not want."
France is considered Greece's best friend and even helped Tsipras prepare the reform proposals that are his lifeline to getting international aid over the coming days or weeks.
"We have lost so much time we cannot afford to lose time anymore," Italian Finance Minister Pier Carlo Padoan said as he arrived for talks Sunday. "We continue to work to establish the conditions to start negotiations, which is the real target. ... It is not about closing a deal."
Yet in a sign that a dramatic Greek exit from the euro would not happen Sunday, a full summit of the European Union's 28 leaders was cancelled. Instead, the eurozone's 19 leaders, including Tsipras, were meeting Sunday afternoon to assess the outcome of the finance ministers' talks and plot a further way ahead.
Malcolm Barr, an analyst at JP Morgan, said the cancellation of the broader EU summit "suggests a clear decision against a third package for Greece is not likely at this point."
In an early morning tweet, Donald Tusk, who chairs meetings of European leaders, said the eurozone summit would start in mid-afternoon "and last until we conclude talks" on Greece.
The leaders are firmly focused on "plan A" that involves Greece living up to its obligations and staying in the euro, a European official who is close to the negotiations said. He spoke on condition of anonymity because he was not authorized to speak publicly.
The official added the hope is that there is enough progress to give the "green light" to the European Central Bank to turn up the emergency liquidity assistance it provides to Greek banks in the next day or two.
Finance ministers broke up talks Saturday after more than eight hours with Greece's creditors unconvinced that the Tsipras government could be trusted to reform the Greek economy. They want iron-clad proof that it can deliver on promises to implement tough austerity and reform measures in return for billions more in rescue money - including making pension changes and sales tax increases.
"I would like to see the Greek government take concrete actions starting tomorrow in parliament to implement measures that are needed," Padoan said Sunday. "And then to rebuild trust that would allow concrete negotiations to move forward."
Tsipras cleared one hurdle Saturday when lawmakers in the Greek parliament overwhelmingly backed a package of economic reforms and further austerity measures, in hopes that would convince European creditors to back the third bailout.
The eurozone ministers have to give their blessing to Greece's bailout request to the European Stability Mechanism. Traditionally, eurozone ministers agree by mutual consensus, though in exceptional circumstances a unanimous vote may not be needed.
Greece has received two previous bailouts totaling 240 billion euros ($268 billion) in return for deep spending cuts, tax increases and reforms from successive governments. Although the country's annual budget deficit has come down dramatically, Greece's debt burden has increased as the economy has shrunk by a quarter.
The Greek government has made getting some form of debt relief a priority and hopes that a comprehensive solution will involve European creditors at least agreeing to delayed repayments or lower interest rates.
Greek debt stands at around 320 billion euros ($357 billion) - a staggering 180 percent or so of the country's annual GDP. Few economists think that debt will ever fully repaid. Last week, the International Monetary Fund said a restructuring of debt was necessary for Greece.
___
Menelaos Hadjicostis and John-Thor Dahlburg in Brussels contributed to this story.
http://m.apnews.com/ap/db_6402/contentdetail.htm?contentguid=devk79Vl&src=cat&dbid=6402&dbname=World&detailindex=1
© 2015 The Associated Press. All Rights Reserved.
Today at 8:59 am by Rocky
» utube 11/21/24 MM&C MM&C News Reporting-Global Trade-Best Route in World-Purchase Power-Justice-Cen
Today at 8:58 am by Rocky
» Al-Sudani discusses with the Secretary-General of the Digital Cooperation Organization enhancing dig
Today at 8:56 am by Rocky
» President of the Republic: Partnership with the United States is essential to achieve regional stabi
Today at 8:54 am by Rocky
» Mazhar Saleh reveals details of the 2023 budget and the 2024 budget horizon
Today at 7:18 am by Rocky
» Absent control and rising corruption.. Sudan faces a harsh political winter
Today at 7:16 am by Rocky
» A representative shows the laws prepared for voting during the upcoming sessions.
Today at 7:14 am by Rocky
» Corrupt people in it.. Independent MP criticizes the performance of Al-Sudani's government
Today at 7:13 am by Rocky
» Parliamentary Oil Committee reveals government move to end electricity crisis
Today at 7:11 am by Rocky
» The Administrative Court postpones consideration of the lawsuit on the legitimacy of the Kirkuk gove
Today at 7:10 am by Rocky
» MP: The ministerial reshuffle depends on consensus within the state administration
Today at 7:09 am by Rocky
» Politicians put question marks on Al-Sudani: corruption, espionage and serving foreign interests
Today at 7:08 am by Rocky
» The International Union of Arab Bankers honors the Chairman of the Private Banks Association: A prom
Today at 7:03 am by Rocky
» Industry: Contracts to supply state ministries with food products
Today at 7:02 am by Rocky
» After Shell Withdrawal, American Company Heads to Implement Al-Nibras Project in Iraq
Today at 7:01 am by Rocky
» Revealing the fate of the Chinese deal in Iraq.. It was disrupted by this party
Today at 7:00 am by Rocky
» The Central Bank of Iraq 77 years of challenges and reforms
Today at 6:57 am by Rocky
» "Unprecedented numbers"... American "CNN" talks about tourism in Iraq
Today at 6:56 am by Rocky
» After implementing automation, Baghdad Airport Customs jumps 400 percent
Today at 6:55 am by Rocky
» Iraq participates in sustainable development activities
Today at 6:53 am by Rocky
» Al-Sudani opens 790 model schools
Today at 6:52 am by Rocky
» Parliamentary Culture: The Right to Information Law will satisfy all parties
Today at 6:51 am by Rocky
» Al-Mashhadani to {Sabah}: Tomorrow we will discuss the Zionist threats
Today at 6:50 am by Rocky
» Industry to {Sabah}: Contracts to supply state ministries with food products
Today at 6:49 am by Rocky
» Trade cooperation between Najaf and Isfahan
Today at 6:48 am by Rocky
» {New building} and {electronic systems} to develop forensic medicine
Today at 6:47 am by Rocky
» A specialized center for monitoring the environmental situation in the capital
Today at 6:46 am by Rocky
» International and parliamentary praise for the success of the "population census" process
Today at 6:45 am by Rocky
» The European Union organizes a workshop in Basra on central administration and the wealth distributi
Today at 6:42 am by Rocky
» The Media Authority and the Ministry of Education discuss the importance of enhancing and introducin
Today at 6:41 am by Rocky
» Iraq's oil exports to America rose last week
Today at 6:40 am by Rocky
» Electricity announces loss of 5,500 megawatts due to complete halt of Iranian gas supplies
Today at 6:39 am by Rocky
» Tomorrow.. The Arab League is looking to unify its position against Israeli intentions to strike Ira
Today at 6:37 am by Rocky
» The Central Bank moves its secret vaults to its new building.. Clarification of the truth of the cla
Today at 6:35 am by Rocky
» Network reveals the fate of the Chinese deal.. It was disrupted by "Iraqi officials"
Today at 6:34 am by Rocky
» From the White House to the "Leaders of Iraq"... A Message Regarding the Targeting of Baghdad
Today at 6:33 am by Rocky
» Parliament session agenda next Tuesday
Today at 6:32 am by Rocky
» "Unforeseen Danger"... Turkish Barracks in Kurdistan Region Between "Hammer and Anvil" - Urgent
Today at 6:30 am by Rocky
» As tensions escalate, parliament holds 'emergency session' to discuss Israeli threats
Today at 6:26 am by Rocky
» For Population and Housing.. Planning announces the success of the general census in Iraq
Today at 6:25 am by Rocky
» Trade announces a special application for the ration card that determines the mechanism for families
Today at 6:23 am by Rocky
» Political Conflicts Obstruct Oil and Gas Law: The Future of Iraq’s Wealth at Risk
Today at 6:21 am by Rocky
» The political representation map awaits the results of the population census.. Will the parliament s
Today at 6:20 am by Rocky
» Drug Localization.. A government advisor announces the registration of important drugs for the first
Today at 6:19 am by Rocky
» Japan announces completion of more than 30 projects in Iraq through soft loans
Today at 6:18 am by Rocky
» Integrity reveals new embezzlement operations in a government bank in Karbala
Today at 6:16 am by Rocky
» Through dialogue or “elite forces”... How does Baghdad prevent the factions from implementing the Is
Today at 6:15 am by Rocky
» Trade Bank of Iraq announces plan to open new branches
Today at 6:14 am by Rocky
» Parliamentary Security: Israel wants international legitimacy to strike Iraq
Today at 6:12 am by Rocky
» Minister of Health: Services provided under health insurance are almost free
Today at 6:11 am by Rocky
» Planning: The census identifies the economic and social characteristics of each Iraqi individual.
Today at 6:09 am by Rocky
» Al-Hakim: Iraq's duty towards the regional crisis must be consistent with its reality and capabiliti
Today at 6:08 am by Rocky
» American party reveals the reason for Israeli threats to Iraq
Today at 6:05 am by Rocky
» Proceedings of the first session headed by Al-Mashhadani.. Budget amendment and no schedules
Today at 6:03 am by Rocky
» After half of it passed without sessions.. Discussion of a new extension of the legislative term
Today at 6:01 am by Rocky
» Here are the dollar exchange rates in the Iraqi stock exchanges
Today at 6:00 am by Rocky
» Iranian gas exports to Iraq have stopped completely for this reason Local
Today at 5:59 am by Rocky
» Koger: The budget schedules have not reached us yet, and we will start the sessions as soon as they
Yesterday at 7:06 am by Rocky
» MP calls for activating China's Belt and Road Initiative economy
Yesterday at 7:03 am by Rocky
» Al-Baldawi: Political will controls the fate of the ministerial amendment
Yesterday at 7:02 am by Rocky
» Al-Lami: US bases in Iraq represent a military arsenal to protect the entity
Yesterday at 7:01 am by Rocky
» Iraq sends "identical" messages to international and Arab parties regarding Israeli threats
Yesterday at 6:59 am by Rocky
» Iraqi parliament resumes sessions on Monday with 'important' laws
Yesterday at 6:58 am by Rocky
» The Central Bank of Iraq sells more than $894 million in three days
Yesterday at 6:56 am by Rocky
» With the participation of the private sector.. Iraq studies a project to establish a large medical c
Yesterday at 6:55 am by Rocky
» OPEC Secretary General: Crude Oil and Natural Gas are 'Gifts from God'
Yesterday at 6:53 am by Rocky
» How much did the census cost in Iraq?
Yesterday at 6:52 am by Rocky
» Türkiye hints at “good news” regarding Kurdistan oil exports.. What about the development path?
Yesterday at 6:51 am by Rocky
» Minister of Education: Project No. 1 has reached its final stages and new schools will be announced
Yesterday at 6:45 am by Rocky
» With Al-Mashhadani's support... Parliamentary move to activate the oversight role during the upcomin
Yesterday at 6:44 am by Rocky
» Israel sends messages to Iraq: An expected strike and no options for deterrence
Yesterday at 6:43 am by Rocky
» A government bank in Karbala embezzles installment amounts paid by a number of borrowers
Yesterday at 6:41 am by Rocky
» Iraqi government begins measures to prevent oil “smuggling” from Kurdistan
Yesterday at 6:40 am by Rocky
» Iraq sends "identical" messages to international and Arab parties regarding Israeli threats
Yesterday at 6:39 am by Rocky
» Al-Araji: The international coalition has great credit in helping Iraq defeat ISIS
Yesterday at 6:38 am by Rocky
» Dollar price stability in Iraq
Yesterday at 6:37 am by Rocky
» Iraqi exhibitions participate in the UFI conference in Germany
Yesterday at 6:34 am by Rocky
» Industry: A plan to increase battery production and cover the needs of the local market
Yesterday at 6:32 am by Rocky
» Health: We are studying the establishment of medical cities in Baghdad and the governorates with the
Yesterday at 6:32 am by Rocky
» Foreign Minister: The government has taken internal and external steps regarding the threats of the
Yesterday at 6:31 am by Rocky
» Immigration: Report to be submitted next month to curb illegal immigration
Yesterday at 6:30 am by Rocky
» The Arab League will hold a meeting next Sunday to confront the threats of the Zionist entity, at th
Yesterday at 6:29 am by Rocky
» Iraq comments on the threats of the Zionist entity
Yesterday at 6:27 am by Rocky
» Al-Mandlawi: The International Court’s decision to arrest Netanyahu and his defense minister is a st
Yesterday at 6:26 am by Rocky
» Supreme Census Authority: End of the second phase of the population census
Yesterday at 6:24 am by Rocky
» An inside look at Iraq’s “fuel smuggling market”: New developments and smugglers “suffering”
Yesterday at 6:21 am by Rocky
» Find out the dollar exchange rates in the Iraqi stock exchanges
Yesterday at 6:20 am by Rocky
» New embezzlement operations revealed in a government bank in Karbala
Yesterday at 6:19 am by Rocky
» Officially.. The Supreme Authority for Population Census sets the date for announcing the results
Yesterday at 6:17 am by Rocky
» Prime Minister: It is hoped that the remaining 1,000 schools will be completed within two months - U
Yesterday at 6:15 am by Rocky
» utube 11/19/24 MM&C Report-Census-Global Transparency-Budget-Trade-Banking-Delete the Ze
Fri Nov 22, 2024 7:00 am by Rocky
» Barzani: The relationship with Baghdad is good and no problem can be solved by force
Fri Nov 22, 2024 6:58 am by Rocky
» Al-Mashhadani: The international system today is “fluid and in crisis” and the Middle East crisis is
Fri Nov 22, 2024 6:57 am by Rocky
» Legal Center: Iraq is the fourth Arab country in child labor and there is a need to legislate a law
Fri Nov 22, 2024 6:56 am by Rocky
» Democratic: The new regional government is a coalition and one step away from negotiations to form i
Fri Nov 22, 2024 6:55 am by Rocky
» Parliament resumes its sessions next week... and clarification of the mechanism for extending its le
Fri Nov 22, 2024 6:54 am by Rocky
» A member of the Patriotic Union of Kurdistan stresses the need to pass the Kurdistan budget law, whi
Fri Nov 22, 2024 6:52 am by Rocky
» Framework warns: Agreement with Washington will be at stake if Iraq is bombed
Fri Nov 22, 2024 6:48 am by Rocky
» Protecting Iraq is an American duty: Security agreements are not just ink on paper
Fri Nov 22, 2024 6:46 am by Rocky