Greece latest: Tsipras submits ‘no concrete plans’ to emergency summit

7th July 2015


– The Greek government has reportedly failed to submit any firm plans for consideration by its eurozone creditors at this evening’s summit, despite being urged to do so.

– The Prime Minister of Malta Joseph Muscat tweeted that “no concrete proposals” had been submitted by Greece, which “doesn’t help this evening’s eurozone leaders’ meeting.”

-The BBC reports that Greek Prime Minister Alexis Tsipras will address the European Parliament tomorrow.

-France has pledged to do all it can to keep Greece in the eurozone, as the risks of allowing a Grexit are too great, Prime Minister Manuel Valls has said.

Ahead of the emergency talks in Brussels today, Valls said  “the basis for a deal exists”, but Germany has cautioned  against the unconditional write-off of Greek debts.

The summit was prompted by Sunday’s referendum result, in which the Greek people voted against the bailout offer that was on the table, due to the austerity measures required.

Greece’s Prime Minister Alexis Tsipras had been expected to request that the country’s €323bn £228bn) debt to be reduced by up to 30%, with a 20-year grace period.

Greek banks will remain closed at least for today and tomorrow as the European Central Bank (ECB) will not increase the emergency liquidity they would need in order to open.

Andrew Wilson, head of investment at Towry, says: “Even just after its finest hour with the ‘No’ vote in Sunday’s referendum, the Greek government could yet prove vulnerable to events to come, and, having emboldened its most radical elements, successful negotiations may prove more elusive than ever. The next key date in the ongoing ‘crisis’ will be Monday July 20th, as this marks the point at which the Greeks must pay the ECB some €3.5bn, which given recent events and Greece’s capital position seems implausible.

“The threat of the Greek situation proving contagious to other parts of Europe is clear, with Portugal and Italy the most likely markets to feel the cool winds emanating from Athens. However, the ECB is likely to provide liquidity to the Eurozone, and to hoover up peripheral debt via Quantitative Easing and using Outright Money Transactions where necessary in order to try and stem such contagion spreading.

“Markets, which are yet to react significantly to Sunday’s ‘No’, will continue to follow the news from Brussels and Athens with laser precision. There will also be future impacts to consider, such as whether the Greek saga will lead to a delay in the FED raising rates. Depending on how events unfold, we remain open to build value into our portfolios should markets overreact.”

Elsewhere on Mindful Money, Rowan Dartington Signature’s Guy Stephens reflects on whether Tsipras’s referendum gamble will pay off and Invesco’s John Greenwood looks at what comes next in the Greek crisis.


1 thought on “Greece latest: Tsipras submits ‘no concrete plans’ to emergency summit”

  1. David Lilley says:

    Today’s Euro-group meeting, first delayed and then pointless as the Greek finance minister brought no new proposals with him. The Greeks responded by saying their previous 47 pages of proposals were still live. But these were laughed out of the room on their initial presentation.
    As with every Euro-group meeting 19 finance ministers have to give up their day job and catch a plane to Brussels. Then the 19 PMs must do the same.
    The big economic argument of the times is big state v smaller state. Capitalism was truncated by state interventionism even before Marx wrote about it. It was replaced by the mixed economy, part state and part private. The left want a big state and the centre want a smaller state. The right no longer exist. The basic reference point of the bigger/smaller argument is that it is only the private sector that is wealth creating and therefore if its size is reduced the money available for health, education, state pensions, defence etc. is reduced.
    Despite five years of attempting to reform Greece they still have a large state with 50% of workers employed by the state, 50% of young people going to university (entering the workplace at 22 years old only to leave 33 years later when they reach retirement age) and 22% of the economy hidden from the tax-man via the black-market.
    The latest 47 page Greek proposals were about taxing the private sector, the wealth creating sector.
    Since the news that the new Greek finance minister turned up with only his begging bowl and no new proposals there has been a big change in news reporting. Instead of towing the line that referendums are democracy in action and the financiers should pay attention to the democratic call for less austerity we are now hearing for the first time what the other members of the EZ think. German MEP Elmar Brok gave an excellent presentation of the place we are in at the moment on Sky news. Some of the other 18 have had similar debt, received troika bailouts, reformed and now have healthy growth. Some have much lower wealth than Greece and some have smaller pensions than Greece. Why should they contribute yet more money to Greece?
    With this about turn change in reporting the “NO” voters and their supporters abroad may realise that the money lenders are in fact the 300m citizens of the other 18 members of the EZ and that if they were given a referendum tomorrow they might vote 100% to refuse any further charity to Greece.

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