Greece and its European creditors reached Friday a deal over the country's request to extend its bailout that would keep the country from falling out of the euro bloc. An official close to discussions, who spoke only on condition of anonymity because he wasn't authorized to comment publicly, says a deal was reached between the two sides at a meeting of finance ministers in Brussels. The official said that, as part of the agreement, Greece could "present a first list of reform measures by Monday" for the country's debt inspectors to assess.
European creditors have insisted that any extension to loans should be accompanied by a commitment to some budget measures and reforms. If the officials from the European Central Bank, International Monetary Fund and European Commission, say the list of measures presented Monday by Greece is acceptable, then eurozone finance meeting could discuss the issue by conference call on Tuesday. The breakthrough in the standoff between Greece and its creditors helped global markets, with the euro and stock markets in the U.S. rising. Friday's meeting was delayed by 4 hours as the finance ministers worked in clusters, where details of the statement were discussed. The developments come a day after Athens requested a six-month loan extension, which would allow Greece to pay its bills and avoid an eventual bankruptcy...
A bad day for Greece from the looks of it, another 4 months of pain in a fiscal straightjacket that they have no hope of ever escaping from. They are a long way off the levels of competitiveness required to stay in the EU and they are also now saddled with huge debt. Logic says exit but logic doesn't include the stubborn heads of the politicians. An exit is coming, it's just a case of when.
A total defeat for Greece actually:
1) The accord requires Greece to submit by Monday a letter to the Eurogroup listing all the policy measures it plans to take during the remainder of the bailout period, to ensure they comply with the conditions.
2) That drove ministers to make Greece hand over custody of nearly 11 billion euros in aid earmarked for stabilising its banks to the euro zone's rescue fund. "We wanted to make sure that the money for Greek bank recapitalisation is for that purpose, not for recapitalisation of the government," Dijsselbloem said.
3) "The Greeks certainly will have a difficult time to explain the deal to their voters," Schauble said.
But I cannot think why Germany has bothered. No way Greece can deliver any primary surplus, so all the next four months will do is prove that.
European creditors have insisted that any extension to loans should be accompanied by a commitment to some budget measures and reforms. If the officials from the European Central Bank, International Monetary Fund and European Commission, say the list of measures presented Monday by Greece is acceptable, then eurozone finance meeting could discuss the issue by conference call on Tuesday. The breakthrough in the standoff between Greece and its creditors helped global markets, with the euro and stock markets in the U.S. rising. Friday's meeting was delayed by 4 hours as the finance ministers worked in clusters, where details of the statement were discussed. The developments come a day after Athens requested a six-month loan extension, which would allow Greece to pay its bills and avoid an eventual bankruptcy...
A bad day for Greece from the looks of it, another 4 months of pain in a fiscal straightjacket that they have no hope of ever escaping from. They are a long way off the levels of competitiveness required to stay in the EU and they are also now saddled with huge debt. Logic says exit but logic doesn't include the stubborn heads of the politicians. An exit is coming, it's just a case of when.
A total defeat for Greece actually:
1) The accord requires Greece to submit by Monday a letter to the Eurogroup listing all the policy measures it plans to take during the remainder of the bailout period, to ensure they comply with the conditions.
2) That drove ministers to make Greece hand over custody of nearly 11 billion euros in aid earmarked for stabilising its banks to the euro zone's rescue fund. "We wanted to make sure that the money for Greek bank recapitalisation is for that purpose, not for recapitalisation of the government," Dijsselbloem said.
3) "The Greeks certainly will have a difficult time to explain the deal to their voters," Schauble said.
But I cannot think why Germany has bothered. No way Greece can deliver any primary surplus, so all the next four months will do is prove that.
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