Debt crisis: Will Greece exit euro?

06 July 2015

The “No” vote in the Greek referendum could lead to social upheaval or civil war. “We might not see Tsipras in power within 2 weeks,” journalist and author Ernst Wolff told RT.

04 July 2015

Greek Finance Minister Yanis Varoufakis has compared the actions of Athens' creditors to “terrorism.”

"What they're doing with Greece has a name - terrorism," Varoufakis told the Spanish daily El Mundo, AFP reports. "What Brussels and the Troika want today is for the 'Yes' [campaign] to win so they could humiliate the Greeks."

Europe would easily survive a possible Grexit, according to Austria's Finance Minister Hans Joerg Schelling.

"For Europe, this would be easy to manage economically. For Greece, it would indeed be considerably more dramatic," Schelling told online newspaper Die Presse, Reuters reports.

The minister, however, cautioned against exaggerating the extent of economic hardship awaiting Greece in case it leaves Eurozone.

"There's a propaganda war going on here. It's exaggerated to think that all the Greeks will have to live in the streets or won't have access to medical care," he said.

03 July 2015

There is immense pressure on Greek society from Brussels for ‘Yes’ vote, French economist Jacques Sapir told RT.

Sunday’s referendum is about staying in the EU and deciding to live in dignity, said Greek PM Alexis Tsipras at a rally in Athens. He told the demonstrators that “whatever happens on Monday, this is a celebration of democracy." He called on voters to give a “proud ‘No’ to ultimatums and those who terrorize you.”

‘Democracy is a cause of celebration’: #Tsipras addresses thousands in #Athens at #OXI rally http://t.co/0M1bJ2Rlnlpic.twitter.com/3ezqxm7uuf

— RT (@RT_com) July 3, 2015

#Tsipras arrives at the 'No' rally in Athens FOLLOW LIVE: http://t.co/SiloUa28mPhttps://t.co/mjEAfKs07v

— Ruptly (@Ruptly) July 3, 2015

Around 27,000 people are taking part in two rallies in central Athens, TASS reported, citing sources in local police.

Some 15,000 gathered at the Syntagma Square by the Greek parliament, protesting austerity proposals from Greece’s creditors. PM Alexis Tsipras is expected to address the crowds at this rally.

Another rally is taking place by the famous Panathenaic Stadium, which hosted the first modern Olympic Games. Some 12,000 supporters of a “Yes” vote in Sunday’s referendum have gathered there, according to police estimates, as reported by TASS.

The number of protesters is reportedly growing according to AFP, citing police. The agency says 25,000 people are at the “No” rally, while 20,000 have gathered to support the “Yes” vote.

After stun grenades and teargas, police waiting just around the corner @Ruptly#Greecepic.twitter.com/b8hHlZA73j

— Katerina Alexandridi (@kalexandridi) July 3, 2015

Greece's top administrative court has rejected an appeal against the Sunday referendum submitted by two Greek citizens, Reuters reported.

Saying that the appeal against the vote on a bailout package from creditors was rejected, the presiding judge in Greece's Council of State court, Nikolaos Sakellariou, said that "the referendum will be held" as scheduled.

Police stand over detained protester after brief clashes near 'No' rally #Greecepic.twitter.com/gsqq0tF9Qr

— Derek Gatopoulos (@dgatopoulos) July 3, 2015

Greek police threw stun grenades and scuffled with protesters in central Athens as a rally got under way in the capital in support of the ‘No’ campaign in the Sunday’s referendum, in which voters will express their view on the latest austerity demands from Greece’s creditors.

The scuffles, which involved a few dozen people, were quick to calm down, Reuters reported.

The choice being offered to Greece is not appropriate as there are other solutions available, Bernard Lietaer, civil engineer and economist, co-designer of the euro, told RT.

Crown Prince Pavlos of Greece, the son of King Constantine II, told CNBC Friday that he hopes Greeks will vote ‘Yes’ in Sunday’s referendum. He also expressed his support for the ruling Syriza party.

"It is not all the fault of Greece here. Europe has put us in a very difficult position - people have been suffering dramatically", Prince Pavlos said.

He added that Europe hasn’t given Athens any room for negotiating, and that it should give more breathing space.

The head of the Greek Banks Union Louka Katseli said on Friday that Greek banks have a liquidity cushion of €1 billion until Monday morning. After that it depends on the ECB, she added.

Greece’s Secretary General on government work coordination Christoforos Vernardakis told RIA Novosti on Friday that the country will resume negotiations with its creditors the day after the referendum.

"I believe that ‘no’ will prevail. Despite threats, despite terror from the European Union, despite the media… the Greek people will say ‘no’ and the next day [after the referendum] we will begin negotiations from a better position," Vernardakis said.

German Finance Minister Wolfgang Schauble told the Bild daily Friday that there will be no quick bailout deal for Greece after Sunday’s referendum.

Negotiations after the referendum will have to be held on a completely new basis and in complicated economic conditions, he said, adding that "will take a while."

Schauble added that Greece would have to make efforts of its own in return for any new aid.

The European Union wants to punish Greece as an example to the rest of Europe, Costas Panayotakis, a sociology professor, told RT.

45.4 percent of Greeks will vote ‘Yes’, 45 percent ‘No’ and 9 percent will stay undecided at the Sunday’s referendum, according to an opinion poll, conducted by the Avgi daily newspaper on Friday. The survey with a breakdown by age and employment showed that 83 percent of students intend to voice ‘No’ on the country’s austerity program.

READ MORE: Greeks will vote ‘Yes’ over bailout terms, polls and bookmakers suggest

Greek Prime Minister Alexis Tsipras on Friday said the country’s debt will need to be cut by 30 percent, with a 20-year grace period for payment, in order to be sustainable. On Thursday the IMF said Greece would need €10 billion over the next few months and an additional €50 billion in the next three years to pay the country’s arrears. The last debt repayment should be no earlier than 2055, the fund added.

READ MORE: Tsipras asks for 30% debt haircut, 20yr grace period

The European Financial Stability Facility (EFSF), Greece’s biggest creditor, has reserved its rights on the country’s debt.

“In line with a recommendation by the EFSF’s CEO Klaus Regling, the EFSF Board of Directors decided not to request immediate repayment of its loans or to waive its right to action – the other two possible options. By issuing a Reservation of Rights, the EFSF keeps all its options open as a creditor as events in Greece evolve. The situation will be continuously monitored and the EFSF will consider its position regularly,” a statement said.

Greece has not turned to Russia for financial aid over its outstanding foreign debts, Russian Foreign Minister Sergei Lavrov said at a conference Friday.

“No one has asked us yet,” the Foreign Minister said in response to a question whether there was a request to lend money to Athens.

Earlier this week, Russia's Envoy to the EU Vladimir Chizhov said Moscow was prepared to help Greece out economically, including economic cooperation in privatizing the country’s infrastructure.

Here's a timeline showing what'e next for Greece.

ICYMI: What's Next for #Greece: Timeline via @businesspic.twitter.com/L3b53We4AT

— Zoe Schneeweiss (@ZSchneeweiss) July 3, 2015

Thousands of protesters in European cities are rallying in solidarity with Greece ahead of Sunday’s referendum over the austerity program. Protestors in Brussels, Amsterdam, London, France, Germany and Italy are calling on Athens’ international creditors to bundle the loan.

On Wednesday Greece failed to repay €1.6 billion to the IMF, becoming the first developed country to default on its international obligations. An additional €6.6 billion in payments to the ECB will come due in July and August.

Greek solidarity protests across Europe ahead of referendum LIVE UPDATES

Greece’s highest administrative court, the Council of State is to rule on Friday on the legality of the July 5 referendum following a petition submitted by two citizens, according to the Kathimerini newspaper. The petitioners, a lawyer and a civil engineer, claim the plebiscite violates the Constitution by posing a question regarding "public finances" and further uses complicated terms that may not be understood by many voters.

Council of State to rule on legality of referendum http://t.co/uMnktfywijpic.twitter.com/xiqdVg9cSp

— Kathimerini English (@ekathimerini) July 3, 2015

President of the Athens Chamber of Commerce Constantine Michalos told BBC Radio Four’s Today program that British tourists would be left without access to essential food and medicines within days if banks stay closed. The shops will begin to close on Friday and not reopen because they are unable to import products due to the bank closures, he warned.

“We will see as of next week shortages on the shelves. We are not in the position, although we may have funds in our accounts, to actually import goods and the major worry here is with basic sectors of the economy such as food and pharmaceuticals," Michalos said.

The current 100 percent in/out choice given to Greece is not appropriate and is a false dilemma, Bernard Lietaer, co-designer of the European currency told RT on Friday. He says there could be a third solution such as Greece having two currencies.

“Greece could be participant in the euro for tourism and shipping which are the largest sectors of the economy. At the same time it could have some new drachma which is playing on different rules and which is providing capacity to reanimate the economy at the grassroots level”, he said.

An elderly man is crying outside national bank branch as pensioners queue to get pensions. by Sakis Mitrolidis #AFPpic.twitter.com/5GYbQoOidh

— AFP Photo Department (@AFPphoto) July 3, 2015

German tabloid Bild launched a poll Friday asking readers whether Germany should support Greece with further loans funded by taxpayers. Eighty-nine percent of online readers voted 'No.'

READ MORE: Ναι vs Όχι: Yes and No campaigns take to Greek web as referendum looms

"Should we support #Greece with further taxpayer's billions?" - @BILD launches its own referendum. pic.twitter.com/k6MVSpgSJJ

— Vincenzo Scarpetta (@LondonerVince) July 3, 2015

Tension in the Greek capital is gaining momentum ahead of Sunday’s referendum, with the latest pro-government rally. People in France have showed their support for Greece, taking to the streets in Paris and calling on Greeks to reject austerity in the referendum.

RT correspondent Ilya Petrenko and presenter Neil Harvey have the details on the latest events.

European Commission Vice-President Valdis Dombrovskis said in an interview to German newspaper Die Welt on Friday that the question Greeks have to vote on in a July 5 referendum was neither factually nor legally correct.

"The suggestions of the European Commission, European Central Bank and International Monetary Fund which are to be voted on refer to a credit program that has expired in the meantime," Dombrovskis said.

He also added that the suggestions don't correspond with the current status of negotiations.

02 July 2015

Clashes broke out between supporters of the 'left-wing' coalition Antarsya and riot police outside the offices of the European Union (EU) in Athens, Thursday. Antarsya were marching to demand that no austerity deal between Greece and its creditors is agreed and their supporters called for the Greek people to vote 'no' in Sunday's upcoming referendum.

The main aim of EU politicians is regime changing in Athens, not a deal, Paul Murphy from Anti-Austerity Alliance, told RT.

Thousands of left-wing protesters in Paris have called on Greek voters to say “NO” to new austerity measures in a weekend referendum, Reuters reports. “Austerity basta” and “Solidarity with the Greek people, cancellation of debt,” said the banners of the protesters who converged at Bastille Square. French police estimate that 3,000 people took part in the demonstration.

A deal with creditors will be concluded within 48 hours after the July 5 referendum, Tsipras said.

Greek banks will reopen after a deal with lenders is concluded, said prime minister Alexis Tsipras, Reuters reports.

Via @kalexandridi: Communist Party march towards Syntagma Square where leader will speak soon #Greferendum#Grexitpic.twitter.com/PPhqx9wNcd

— Ruptly (@Ruptly) July 2, 2015

The European Union as it currently stands is working its way into economic irrelevance, Patrick Young, an expert on global financial markets, told RT.

Greece needs and extra €50 billion over the next three years and a 20-year grace period on debt repayments, the International Monetary Fund (IMF) said on Thursday. The final payments should not take place until 2055. The country’s debts are “unsustainable”, according to the Fund.

In a message to European leaders, IMF officials said they would not be prepared to put a proposal for a third Greek bailout package unless it included a commitment to economic reform and debt relief.

Spanish Economy Minister Luis de Guindos says the doors for negotiations will remain open for Greece regardless of the outcome of Sunday's referendum. A ‘yes’ vote would amount to a vote of no confidence in the Greek government, he told Spain’s Cadena SER radio. If the `No' vote wins, we will continue to be open to talks, he added. The referendum scheduled for July 5 was an ultimatum that left no room for discussion until after the vote, de Guindos concluded.

Cash withdrawals nationwide hit €3,000 per second, as many ATMs were emptied, says The Times. The daily cash withdrawal limit is €60.

Greece does not want to leave the eurozone and wants to remain part of the European community, Greek Finance Minister Yanis Varoufakis told Bloomberg TV on Thursday.

"We really desperately want to stay in Europe,” he said, adding that the desire is strong, despite the criticism from Greek authorities of the existing order in the European Union. The question for the Greeks is how to do it. To accept or reject the offers from creditors. The minister said that if Greece signs the agreement with its creditors then in 6-12 months it will be closer to insolvency than it is now.

Greek debt crisis is the start of EU falling apart, Jon Gaunt, podcaster and journalist, told RT.

President of the Eurogroup Jeroen Dijsselbloem said on Thursday that it’s hard to bridge "fundamental differences" between Greece and Europe, according to Reuters.

Varoufakis says that if the Greek people vote “Yes” in Sunday’s referendum, he will resign as finance minister on Monday night, according to Bloomberg

Greek banks will open as normal next Tuesday, as there's no banking crisis in the country, he added.

As international creditors shut the door on talks with Athens until after Sunday's referendum and the pressure on the Greek government mounts, RT correspondent Ilya Petrenko has asked people in the streets of Athens of what they think about being lectured on their choice of government.

READ MORE: Greek PM: We aim to seal deal with creditors after referendum

And Patrick Young, expert in global financial markets, tells RT that a big problem about the eurozone is that Chancellor Angela Merkel of Germany – the bloc’s strongest economy – doesn’t want to help ailing Greece out, showing that the rules for the rich and the poor are different.

01 July 2015

Moody’s has downgraded Greece’s bond rating from ‘Caa2’ to ‘Caa3,’ as it has become the first developed economy to default on an IMF loan.

The agency placed the rating under review for further downgrade, expecting Greece to default on its privately held debt if creditors refuse to provide further financial support.

Greece should pursue economic reforms in a more active way before its European creditors give it a break on its debt, said IMF chief Christine Lagarde to Reuters.

“Given where we are, my suspicion is it would be much preferable to see a deliberate move towards reforms (and) for that to be followed through by the other side of the balance,” Lagarde said answering the question on which should come first – a Greek pledge to carry out reforms, or a debt relief from its lenders.

Eurogroup head Jeroen Dijsselbloem has confirmed that no further negotiations with Greece will take place until after it holds a referendum.

"There will be no further talks in the coming days, nor at Eurogroup level, nor between the Greek authorities and the institutions on proposals or financial arrangements. We will simply wait now the outcome of the referendum on Sunday and take into account the outcome of the referendum," he said.

The talks between Athens and the Eurogroup will only be resumed after the referendum. Such a decision was made by the finance ministers of the Eurozone during the conference call, according to NOS TV channel.

European authorities will have to make some concessions if they want to reach the deal with Greece, Mark Weisbrot, co-director of the Center for Economic and Policy Research, told RT.

The Eurogroup has finished a videoconference over the Greek financial crisis, said the group’s president Jeroen Dijsselbloem.

#Eurogroup conference call on #Greece just ended; video with my remarks will be online shortly on http://t.co/9b0ZXi2aT4

— Jeroen Dijsselbloem (@J_Dijsselbloem) July 1, 2015

The possibility of a Greek exit from the eurozone has never been considered as a real prospect, the Eurogroup has always pursued finding a solution for the country’s sustainable growth, said Pier Carlo Padoan, Italy’s Minister of Economy and Finance.

The IMF will decide "in the coming weeks" on whether it will fulfill Greece's request to extend the debt payment it had failed, a source familiar with the matter told AFP on Wednesday.

Both Greece and the international lenders have come up with advanced proposals after the country decided to hold a referendum, Tsipras said at a televised news conference.

Tsipras: Those who say we have secret plan for Greece to exit euro are lying

— Kathimerini English (@ekathimerini) July 1, 2015

Voting ‘no’ at the Greek referendum does not mean breaking relations with Europe, it would be a decisive step towards a better agreement with the country's creditors, according PM Tsipras.

Holding a referendum in Greece is aimed at avoiding risks for the country, said Prime Minister Alexis Tsipras in a televised address to the nation.

BREAKING: Greek PM Tsipras says - We are fighting to protect people's pensions

— Reuters Top News (@Reuters) July 1, 2015

French President Francois Hollande said Wednesday it was the duty of other eurozone countries as well as Greece to keep the country in the single currency area, Reuters reports. He added that it’s not the time for vetoes or "intransigent statements" but for dialogue.

"It is our duty to keep Greece in the eurozone. That depends on Greece... But it also depends on us. As a European I don't want the dislocation of the eurozone, I am not into intransigent comments, into brutal rifts," Hollande said.

Once a referendum in Greece takes place, the whole scenario of the Greek debt crisis changes again, William Mallinson, former UK diplomat, told RT.

The outlook for financial stability in the UK has deteriorated in recent days as the crisis in Greece intensifies, the Bank of England (BOE) said on Wednesday, according to Wall Street Journal. BOE Governor Mark Carney says Athens’ failure to reach a deal with international creditors can trigger a selloff in financial markets and threaten the global economy.

“The situation remains fluid, and it is possible that a deepening of the Greek crisis could prompt a broader reassessment of risk in financial markets. That could ultimately hurt the confidence of businesses and households in Britain,” Carney said.

It’s unclear whether the Greek government is really planning to hold a referendum, said German Finance Minister Wolfgang Schauble.

Britain's Chancellor of the Exchequer George Osborne called on Wednesday for the country to prepare for the worst in protecting the UK economy after Greece failed to repay €1.6 billion to the IMF, Sky News reported.

"Britain's attitude to this developing crisis is clear: we hope for the best; but we prepare for the worst, and we stand ready to do whatever is necessary to protect our economic security at this uncertain time,” he said.

Osborne added that Greece’s failure to repay its debt to the IMF only deepened the crisis.

The conditions of the Greek referendum fall short of international standards, said the Council of Europe on Wednesday, according to the Associated Press.

German FinMin Schäuble: Present Greek Govt Not Very Trust-Worthy Party for New Bailout Talks.

— Holger Zschaepitz (@Schuldensuehner) July 1, 2015

Greek Finance Minister Yanis Varoufakis is expected to comment on the government's bailout decision on Wednesday, media reports.

European Commissioner for the euro Valdis Dombrovskis said Wednesday in Brussels that the EU believes the time has come to discuss a new program of assistance for Greece.

“Today there’s a new situation and it’s necessary to discuss a new assistance program,” he said.

Greek Prime Minister Alexis Tsipras is expected to address the nation Wednesday from Athens, according to media reports.

Greek PM #Tsipras to address the nation shortly #Greece

— Kathimerini English (@ekathimerini) July 1, 2015

RT correspondents Peter Oliver and Harry Fear and presenter Eunan O'Neill explain what's happening in Greece.

Thousands of Greek pensioners queued outside banks Wednesday but were told they would have to return Thursday or Friday. The Greek Ministry of Finance on Tuesday announced it would open some banks for pensioners who don't have bank cards, to allow them some access to their money. Withdrawals were to be limited to €120 per person for the week.

French Finance Minister Michel Sapin said Wednesday on French RTL radio he was hoping for an agreement with Greece before the July 5 referendum, but called the situation “terrifyingly complicated.”

”If Greece votes yes, negotiations will continue in difficult conditions, but we'd be able to quickly find an agreement. If Greece votes no, there is a risk of sliding towards a Greek exit from the euro,” Sapin said.

He also added that “little countries,” many of which have made big economic changes over the past few years, have taken a tougher stance on Greece than Germany.

#BREAKING Schaeuble says no Greece deal possible before referendum

— Agence France-Presse (@AFP) July 1, 2015

Russia is ready to assist for Greece economically, along with the cooperation in privatizing the country’s infrastructure, Russian Envoy to the EU Vladimir Chizhov told RIA Novosti on Wednesday.

“Russia is ready to cooperate with Greece. As far as I know, Greece has not turned to Russia for direct financial aid. We have the ability of increasing our economic cooperation, in particular Greece has the ability of privatizing, including railroads and the port [in Thessaloniki],” Chizhov said.

At the request of several ministers today's #eurogroup teleconference will start at 5.30pm #Greece

— Michel Reijns (@MichelReijns) July 1, 2015

More important than the Eurogroup? *Berlin: Chancellor Angela Merkel holds lower house speech on Greece; 13:00pm

— Frederik Ducrozet (@fwred) July 1, 2015

Even if Greece accepted all of the austerity measures demanded by its main creditors, the Troika, it still would not be able to make ends meet by 2030, according to IMF estimates revealed in a set of documents obtained by a German newspaper.

READ MORE: Austerity not enough to save Greece - leaked IMF documents

Greeks form lines near banks before opening time after the government put limits on amounts for cash withdrawals.

Pensioners waiting for opening of banks in Athens before sunrise #GreeceCrisis@Ruptlypic.twitter.com/p8qBqgRhGd

— denise reese (@denice_ruptly) July 1, 2015

30 June 2015

IMF confirms Greece didn't pay its debt by deadline, but asked for a repayment extension earlier that the Fund's board will consider it "in due course."

Greece misses its June deadline to pay €1.6 billion to the IMF, becoming the first developed country to default on its international obligations.

After a volatile day of trading ahead of Greece's impending default, the US stock market closed with a slight gain. The Standard & Poor's 500 index rose 5.47 points, or 0.3 percent. The Dow Jones Industrial Average climbed 23.16 points, or 0.1 percent.

International rating agency Fitch has downgraded the long-term foreign and local currency Issuer Default Ratings (IDR) for Greece from ‘CCC’ to ‘CC’, it said in a statement. The short-term foreign currency IDR was affirmed at ‘C’.

Despite torrential rain, over 30,000 people have rallied in Athens to take part in a demonstration supporting the “yes” vote in favor of the proposals of the Troika of creditors. People gathered in Syntagma Square in the heart of Athens are loudly chanting the word “yes” and carrying banners with the slogan “we are living in Europe.”

Greece is not going to default on its debt, but is going to use a strong NO at the referendum on Sunday to strengthen the Greek bargaining position in negotiations with its creditors, George Katrougalos, Greek Minister of Administrative Reforms, told RT.

It’s too late to extend Greece’s existing bailout, Eurogroup chairman Jeroen Dijsselbloem said after an emergency conference call between the Eurozone’s financial ministers.

"The political stance of the Greek government doesn't appear to have changed," Dijsselbloem said, adding that it would have to change before a new bailout program could be agreed upon.

He said that the council would meet again on Wednesday to discuss new proposals by Greece.

EU finance ministers have finished their telephone conference call. Finland’s Finance Minister Alexander Stubb has tweeted that an extension of the bailout program is not possible.

#Eurogroups ends. Letter of @tsipras_eu includes three requests. Extension of programme or haircut not possible...cont...

— Alexander Stubb (@alexstubb) June 30, 2015

He then mentioned a request for another program.

...request for ESM-programme is always dealt with through normal procedures.

— Alexander Stubb (@alexstubb) June 30, 2015

The finance ministers will have another conversation on Wednesday.

Also, another #eurogroup call tomorrow, I'm told. Ugh.

— Peter Spiegel (@SpiegelPeter) June 30, 2015

In Brussels, the head of European Commission Jean-Claude Juncker has dodged a meeting with the media citing "important events."

Juncker ends speech saying must go 'immediately because important events that you are not prepared for are happening in Athens'...

— Danny Kemp (@dannyctkemp) June 30, 2015

Thousands of protesters have gathered in Syntagma square in central Athens ahead of Sunday’s referendum to support the Yes campaign, pushing for Greece to stay in the Eurozone.

Quite a big crowd here in #Syntagma sq right now for the pro "yes" rally. #Athens#Greece#Greferendumpic.twitter.com/L7fP3gMIDz

— Nick Barnets (@NickBarnets) June 30, 2015

US President Barack Obama says the Greek crisis will not affect Americans in a major way: “In layman’s terms for the American people, this is not something that we believe will have a major shock to the system,” he said at a news conference. “But obviously it’s very painful for the Greek people, and it can have a significant effect on growth rates in Europe.”

Greece appears to be requesting a bailout of almost €30 billion (US$33.4 billion). According to a letter uploaded by the Financial Times, Athens is seeking more funding to cover debt that expires between 2015 and 2017.

There is "no way" eurozone finance ministers will release funds for Greece to meet a crucial payment to the International Monetary Fund due by midnight (22:00 GMT) to avoid a default, a eurozone official said on Tuesday, Reuters reported.

Another person with knowledge of the matter also said there was no question of an immediate release of funds.

Chancellor Angela Merkel said on Tuesday that Germany refuses to consider a third bailout package proposed by Athens before July 5 referendum, according to media reports. Earlier today, Greek Prime Minister Alexis Tsipras submitted a new two-year aid proposal to the country’s international creditors, calling for debt restructuring.

READ MORE: Greece asks for new 2yr bailout program from creditors

BREAKING: Merkel says Germany refuses to consider a third bailout package proposed by Athens before Sunday's referendum in Greece.

— dpa International (@dpa_intl) June 30, 2015

Extraordinary Eurogroup teleconference tonight 19:00 Brussels time to discuss official request of Greek government received this afternoon

— Jeroen Dijsselbloem (@J_Dijsselbloem) June 30, 2015

Greece can stay in the eurozone even with a ‘No’ vote in the July 5 referendum, German Finance Minister Wolfgang Schaeuble told a private meeting with lawmakers in Berlin on Tuesday, according to media reports. He added that the European Central Bank (ECB) would do everything to protect the euro should Greeks vote against the austerity reforms.

People across the world have collected more than €130,000 to help Greece make the IMF payment. Join if you like.

— Gael Peron (@soull) June 30, 2015

The Luxembourg Bourse has halted trading in the bonds from some of Greece's largest banks and institutions, as well as sovereign bonds. Trading in a number of Greek government bonds and other Greek-issued securities have been also blocked by electronic trading platform Tradeweb. The blocking came at the request of the UK Financial Conduct Authority. The yield on the 2019 bonds of the National Bank of Greece skyrocketed on Tuesday morning to 35.46 percent from 20 percent.

#Greece | LUXEMBOURG BOURSE SUSPENDS BONDS OF SEVERAL GREEK ENTITIES (All this not "priced in" to NBG 2019 4.375%s!) pic.twitter.com/e9Ra6Jc7W0

— Ioan Smith (@moved_average) June 30, 2015

Athens will not be repaying the €1.6 billion IMF debt on Tuesday, Greek Finance Minister Yanis Varoufakis told journalists.

U.S. stock index futures, DAX, oil pare gains following Greek finance minister's comment that Greece will not pay IMF

— *Russian Market (@russian_market) June 30, 2015

Greek Prime Minister Alexis Tsipras and the head of the European Commission Jean-Claude Juncker talked today on the phone about a final opportunity to reach a consensus over the issues, according to EU Commission’s spokesperson Margaritis Schinas.

“Prime Minister Alexis Tsipras called the head of Euro Commission Jean-Claude Juncker and they discussed the possibility of a last minute agreement,” he said.

The EU Commission confirmed that there are no changes to the offer from the creditors published on Sunday. Greece should pay €1.6 billion to the IMF by 22:00 GMT today.

The former Finance Minister of Finland Juta Urpilainen told YLE TV she expects Greeks will vote ‘Yes’ in the July 5 referendum and for Greece to stay in the eurozone.

"I believe the Greeks will vote in favor of retaining their membership in the euro area,” she said, adding that then EU will probably have to negotiate with a new Greek government.

Greek Prime Minister Alexis Tsipras is preparing new initiatives to find a compromise with creditors over Greek debt, the national ERT TV channel reported Tuesday. Greek media say Tsipras is examining the latest plan put forward by the European Commission head Jean-Claude Juncker.

The issue of Greece is a private issue related to its relationship with international creditors, Kremlin spokesman Dmitry Peskov told journalists on Tuesday, answering a question on whether providing assistance to Athens was being discussed at the highest level in Russia. Peskov also added that Moscow is closely monitoring the situation in Greece.

#BREAKING Spain PM wants 'yes' vote in Greek referendum, change in govt

— Agence France-Presse (@AFP) June 30, 2015

Greece will turn into an “economic colony” of Europe if Athens accepts austerity reforms inflicted by international creditors, Greek Deputy Defense Minister Kostas Isychos told Sputnik on Tuesday.

“If they [the lenders’ positions] were to be accepted, it would mean that Greece would become an economic colony of the south within Europe, something unacceptable to our history, to our national pride and sovereignty,” Isychos said.

About 1,000 bank branches will be opened in Greece for three days this week to allow pensioners without bank cards to make withdrawals, the Greek Finance Ministry said Tuesday. They will be allowed to withdraw a total of just €120 for the week, while the daily limit currently stands at €60. Meanwhile, some depositors say that ATMs in Athens have run out of €20 notes, with only €50 notes available.

As Greece’s deadline to repay €1.6 billion to the IMF expires today, statements around its possible exit from the eurozone are becoming more controversial. EU leaders warned Monday that a ‘No’ vote at a Sunday referendum would mean a vote for leaving the eurozone. However, most senior politicians say they have neither wanted nor planned for an ‘exit’ scenario. The economic consequences of a so-called ‘Grexit’ remain unclear.

RT’s correspondents asked people in Madrid and Rome how they would vote if they were offered the chance to exit the euro. While they were split, businessmen in Greece told RT’s Harry Fear they would definitely vote against the creditors’ new proposals.

The eurozone has been troubled from the very beginning and big fears of the domino collapse are real, adds economist Jeffrey Albert Tucker.

“These countries should have never been part of the same monetary union to begin with, because they have radically different fiscal policy and regulatory policies. They are just completely different countries with different types of economic structures,” Tucker told RT.

Fitch has downgraded Greece’s major banks to ‘restricted default,’ they announced in a statement.

“Fitch Ratings today downgraded Greece-based National Bank of Greece S.A. (NBG), Piraeus Bank, S.A. (Piraeus), Eurobank Ergasias S.A. (Eurobank) and Alpha Bank AE’s (Alpha) Long- and Short-term Issuer Default Ratings (IDRs) to ‘RD’ from ‘CCC’ and ‘C’, respectively. Fitch has also downgraded these banks’ Viability Ratings (VRs) to ‘f’ from ‘ccc’."

READ MORE: S&P downgrades Greek credit rating, puts chance of Grexit at 50

The ruling Syriza party has issued a statement supporting the large turn-out at Monday evening’s rally.

“Today, in Syntagma, thousands of citizens responded to the ultimatums [made by creditors],” the party said in a statement said. “People said a big and resounding ‘no’ to blackmail, terrorization, threats internally and externally, and a big ‘yes’ to democracy, dignity, popular sovereignty, values that are the foundation of modern European civilization.”

29 June 2015

Here is RT’s Ruptly video of the protests in Greece.

Thousands of ‘no’ activists gathered in Athens’ Syntagma Square on Monday evening to speak out against further austerity measures, RT’s Ruptly reported. Protesters are encouraging the Greek people to vote 'no' in the upcoming referendum.

Thousands of 'no' protesters flood #Athenshttp://t.co/9WGFKVttqB#Syntagma#oxi2015#Greecepic.twitter.com/6mTLZCIZ58

— Ruptly (@Ruptly) June 29, 2015

European Central Bank executive board member Benoit Coeure told the French financial daily Les Echos that “A Greek exit from the euro zone, so far a theoretical issue, can unfortunately not be excluded anymore,” Reuters reported. A ‘No’ vote in the upcoming referendum would mean that “it would be very difficult to resume political dialogue,” but in the case of a ‘Yes’ vote, he “has no doubt” that commitments to Greece would be honored.

Greek PM Alexis Tsipras said Athens would make the payment on the IMF loan by the Tuesday deadline if creditors offered an acceptable bailout deal on Monday, according to Reuters.

He added that “if the Greek people want to proceed with austerity plans in perpetuity, which will leave us unable to lift our heads ... we will respect it, but we will not be the ones to carry it out.”

Greek PM Alexis Tsipras called on Greeks to vote against the EU proposed terms for an international aid deal in referendum to be held on July 5. He said that a ‘No’ vote was necessary to demonstrate Greece’s strength in future negotiations concerning the debt, but stressed that it wouldn’t necessarily push Greece out of the eurozone. “I don't think that their plan is to push Greece out of the euro, but to end hopes that there can be different policies in Europe,” he told Greek state television, as cited by Reuters.

International rating agency Standard & Poor’s has downgraded the long-term rating of Greece from CCC to CCC- with a negative outlook. The medium-term rating was estimated at C.

The CCC- rating implies that the issuer faces an imminent default and has little chance to remedy the situation.

Greek banks will be shut until July 6 and a €60 limit will remain on ATM withdrawals, the government announced on Monday. It added that foreign tourists aren’t subject to the restrictions.

Greece will not repay the 1.6-billion euro loan to the IMF due on Tuesday, Reuters reported, citing a source in the Greek government.

— Alexis Tsipras (@tsipras_eu) June 29, 2015

A situation similar to the Greek one can’t happen in Spain, the country's Prime Minister Mariano Rajoy said on Monday.

Nobel economist urges Greeks: Vote 'yes' in the referendum http://t.co/HAnDXM8fNX

— dwnews (@dwnews) June 29, 2015

The point is: greek referendum won’t be a derby EU Commission vs Tsipras, but euro vs dracma. This is the choice.

— Matteo Renzi (@matteorenzi) June 29, 2015

Germany remains open to talks with Greece and will do so even after the referendum, said Merkel.

The German parliament will debate the Greece debt crisis on Wednesday, said Chancellor Angela Merkel.

The referendum, scheduled for July 5, is a legitimate way for the people of Greece to express their point of view, said President of the European Parliament Martin Schulz.

Greece made a €50,000 deposit to the European Financial Stability Facility (EFSF) on Monday, according to German business paper Handelsblatt. The EFSF confirmed the receipt of the full payment from Athens on time. The fund could have said Greece was in default if it hadn’t met the deadline.

Though there is a lot of noise concerning the Greek crisis and the Greek economy is likely going to collapse this week, three months from now no one will remember Greece going bankrupt, financial commentator Jim Rogers told RT.

— Handelsblatt Global (@HandelsblattGE) June 29, 2015

German Chancellor Angela Merkel is giving a news conference on the Greek crisis in Berlin. She’s criticized Greek Prime Minister Alexis Tsipras, saying his policy is threatening the whole eurozone.

Greek depositors have withdrawn nearly €8 billion from their accounts in local banks in the last two weeks alone, according to the Financial Times.

The euro is more than just a currency; it is a reflection of the mutual confidence in the eurozone, according to German Chancellor Angela Merkel. "If we lose the ability to find a compromise, we will lose Europe," she said.

The lenders are not asking Greeks for wage and pension cuts, and have reduced their demands on Greece by €12 billion, said Juncker.

Juncker: This isn't stupid austerity package, some of measures will hurt, but package goes well beyond fiscal measures, proposes way forward

— RT (@RT_com) June 29, 2015

Negotiations with Greece were cut short at the worst moment, as an agreement could open new credit lines to Athens, said Juncker.

READ MORE: Greece’s creditors ready to unlock €15.3bn till November – media

— RT (@RT_com) June 29, 2015

The European Commission is not going to make new proposals to Greece to settle its debt problems, said Juncker.

A Greek exit from the eurozone will never be a solution to the problem, said European Commission President Jean-Claude Juncker.

— RT (@RT_com) June 29, 2015

PM Tsipras has written to all eurozone heads of government asking them to extend the Greek bailout, according the Financial Times.

The FT acquired a copy of the note he wrote to the Prime Minister of Luxembourg Xavier Bettel.

Russia is concerned about possible negative consequences for the entire area of the EU due to the financial crisis in Greece, Russian presidential spokesman Dmitry Peskov told reporters on Monday.

— RT (@RT_com) June 29, 2015

Municipal transport in Athens will be free until the Greek banks start working, according to the Ministry of Transport.

Greece quitting the eurozone is out of question at the moment, the Finnish Finance Minister Alexander Stubb told reporters on Monday. The Europeans continue to do everything possible to keep the country within the group.

PHOTO: Bank manager explains #GreeceCrisis situation to elderly hoping to get their pensions http://t.co/nIcTK2tMT5pic.twitter.com/jWoIqvDv3s

— RT (@RT_com) June 29, 2015

Germany will respect the results of the Greek referendum on the creditors’ proposals said Germany’s State Secretary Steffen Seibert in Berlin.

"This is a legitimate decision by the Greek government. Of course, we will respect the result", he said.

Key global indices have nosedived at fears Greece will again miss its Tuesday deadline when its €1.6-billion debt to the IMF is due for payment. Germany's DAX has suffered the most, falling 4.17 percent this morning. In Asia, where trading finished by the time the Shanghai Composite was published showed the worst result, closing at 3.34 percent lower.

The euro recovered from its early lows against other major currencies on Monday. By 08:25 GMT the euro was trading at $1.1082, still down 0.7 percent on the day, but well clear of a four-week low of $1.0953 in Asian trading.

READ MORE: Default countdown? World markets slump as Greek debt deadline nears

French President Francois Hollande and German Chancellor Angela Merkel will hold emergency meetings on Monday with key ministers and party leaders over the crisis in Greece. Hollande will convene a "restricted cabinet" meeting at the Elysee Palace at 07:00 GMT. Merkel will meet the heads of the German parliamentary groups and parties in Berlin at 11:30 GMT.

EU Commission head Jean-Claude Juncker has also scheduled a press conference in Brussels at 10:45 GMT to discuss the Greek issue. The meetings come ahead of Greece’s €1.6 billion IMF payment deadline on June 30.

READ MORE: Greece closes banks, imposes capital controls

28 June 2015

The Macedonian Central Bank has ordered all Macedonian banks to withdraw all deposits and loans from banks located in Greece, as well as from the branches of Greek banks located around the world.

The Greek Financial Stability Council has recommended a daily cash withdrawal limit of €60 from Tuesday, while ATMs will be closed on Monday, Reuters reports. Foreign bank card holders will be allowed to withdraw money in accordance with the limit set by their banks.

It's official: 60 euro ATM withdrawals per day #Greece

— Danai Dasopoulou (@d_daso) June 28, 2015

Greece’s governing Syriza party has issued an appeal for Greeks to attend a mass anti-austerity demonstration in Syntagma Square on Monday night, calling on the nation to stop “the abolishment of democracy” and “send a strong message of pride, hope and dignity to Greece and Europe.”

Antonis Samaras, the leader of Greece’s largest opposition party, urged Prime Minister Alexis Tsipras to revoke the referendum and call for a national unity government instead. “Mr. Tsipras must continue the negotiations” and if he cannot he “should attempt a big national consensus,” Samaras said, meaning a unity government, as reported by Reuters.

The Greek financial stability council has recommended keeping the country’s banks closed for the next 6 working days, Reuters has reported.

Up to 300 protesters from left-wing parties and unions have gathered in Paris to show their solidarity with Greece.

Hellenic Petroleum, Greece’s biggest oil refiner, issued a statement on Sunday amidst growing fears of fuel disruptions and chaos in Greece, as reported by Reuters. The company said it had enough reserves to meet market demand for many months and that its refineries were operating normally.

Several hundred anti-austerity protesters rallied near the Greek parliament after Prime Minister Alexis Tsipras announced bank holidays and capital controls in his TV address on Sunday. The demonstration began in front of the European Commission offices in Athens, with protesters chanting slogans “Drachma better than submission,” and “We don’t owe, we won’t sell, we won’t pay.”

Αυτό!!! #team_OXI#Greferendum#dimopsifismapic.twitter.com/444LYSF7xo

— Cranky (@Crankysd) June 28, 2015

In a TV address to the nation on Sunday, Greek Prime Minister Alexis Tsipras announced a bank holiday and capital controls in Greece, blaming other EU countries and ECB for “forcing Greece’s hand.” He went on to call the decision to reject Athens’ request for a short-term bailout extension “an unprecedented act by European standards” that “questions the right of a sovereign people to decide.” He gave no details on how long the measures would remain in force.

The dignity of the Greek people in the face of blackmail and injustice will send a message of hope and pride to all of Europe. #Greece

— Alexis Tsipras (@tsipras_eu) June 28, 2015

In the coming days, what's needed is patience and composure. The bank deposits of the Greek people are fully secure. #Greece

— Alexis Tsipras (@tsipras_eu) June 28, 2015

US president Barack Obama and German Chancellor Angela Merkel discussed the Greek crisis on Sunday, agreeing that it is “critically important” to return Greece to a path that allows it to continue reforms while maintaining economic growth within the euro, Reuters has reported with a reference to the White House.

Anthimos Thomopoulos, the CEO of one of Greece’s largest banks, the Piraeus Bank, said Greek banks would not open on Monday, as reported by Reuters. The Athens Stock exchange will also reportedly be closed on Monday.

Greek Prime Minister Alexis Tsipras has called an emergency meeting of his cabinet that will take place at 8pm (17:00 GMT) on Sunday, Reuters reports, without revealing any further details.

The IMF boss Christine Lagarde said in an official statement on Sunday that she was “disappointed” with the “inconclusive outcome of recent discussions on Greece in Brussels.” She also underscored her commitment to “the balanced approach” to the Greek crisis, which combined “appropriate structural and fiscal reforms” in Greece “supported by appropriate financing.” She added the IMF would “pursue that approach with the Greek authorities and other European partners.”

Statement by #IMF Managing Director Christine Lagarde on #Greece. #euro#Greferendum#ec#ecbpic.twitter.com/STuZ2MQ3sV

— Manos Giakoumis (@ManosGiakoumis) June 28, 2015

Greek President Prokopis Pavlopoulos met the leader of the main opposition conservative party and former Prime Minister Antonis Samaras, warning that Greece should stay in the euro, Reuters reports. "The course of the country in Europe and in the eurozone must be undisturbed," he said, expressing confidence that the Greeks would display “greater maturity and resolve” during the forthcoming referendum.

Antonis Samaras said the aim of his party was “to defend the position of Greece in the heart of Europe," which at the moment is “in immediate danger.”

Greek Finance Minister Yanis Varoufakis alluded in an interview to the BBC that Greece might not pay the €1.6 billion to the IMF on Tuesday. He suggested the ECB should pay the Greek debt to the IMF out of profits from the 2014 Greek bonds. He called it “a very sensible transfer.” He explained that as Greece "was owed money by one part of the troika and… owed money to another part of the troika,” it would be better if they “sort [it] themselves out.”

Capital controls within a monetary union are a contradiction in terms. The Greek government opposes the very concept.

— Yanis Varoufakis (@yanisvaroufakis) June 28, 2015

The Greek Finance Ministry made a formal denial of the BBC radio statement that their government planned any capital controls impositions, saying Finance Minister Yanis Varoufakis “had never spoken of the government imposing capital controls.”

Greek Finance Minister Yanis Varoufakis told BBC radio the Greek government would look into options on Sunday night of imposing capital controls and closing the country's banks on Monday. However, he emphasized the government doesn’t like the idea of capital controls, as such a move would be “incompatible with the concept of a monetary union.” He also criticized the creditors once again saying that they hadn’t met Greek requests “even quarter [of the] way.”

ELA to Greek banks maintained at its current level http://t.co/DYLsGCUI2g

— ECB (@ecb) June 28, 2015

Chancellor Angela Merkel has invited leaders from all the major German parties to a crisis meeting at the Chancellery in Berlin on Monday to discuss the Greece crisis, a senior German official said. The official said that the chairmen and parliamentary leaders of all the parties represented in the German parliament, including the opposition Greens and Left, had been invited to attend the meeting. (Reuters)

Greek Finance Minister Yanis Varoufakis told the German Bild newspaper in an interview that he placed the responsibility for the resolution of the Greek crisis on the German Chancellor Angela Merkel calling her “the representative of the most influential EU power.” He emphasized that she held “the key to the problem’s solution,” while also calling on other EU leaders “to act.”

Varoufakis added that Athens was ready to consider new creditors’ proposals and might even change the recommendation to the people and urge them to vote for the new suggestions, provided they were acceptable to Greece.

#Greece has "bent over backwards" on bailout deal but others "have not come to the party", finance minister tells BBC pic.twitter.com/gZQGC1TyFc

— BBC Breaking News (@BBCBreaking) June 28, 2015

Greek Finance Minister Yanis Varoufakis has confirmed to the BBC that his government would consider imposing capital control and closing banks on Monday.

France's Prime Minister Manuel Valls says he doubts the ECB would stop supporting Greek banks.

"The European Central Bank is independent, but I don't doubt it will assume its responsibilities," Valls said in an interview broadcast on Europe 1 radio. "I don't think it can cut off support, to put it another way."

Some sources suggest the ECB may take this decision as soon as Sunday night.

Austria's finance minister said a Greek exit from the euro - or Grexit - would only be possible if Athens first asked to leave the European Union and other countries agreed to its request.

"The consequences for the euro countries are not nearly as bad as for Greece. It's clear that one country can under no circumstances blackmail the European Commission and the euro countries," Hans Joerg Schelling was quoted as saying in Sunday's print edition of Austrian newspaper Die Presse. (Reuters)

We pledge that come Monday, July 6, we will continue our efforts--with the power of our people's verdict on our side. #Greece#vouli

— Alexis Tsipras (@tsipras_eu) June 28, 2015

With Tsipras’ ruling coalition holding 163 seats in the 300-seat parliament, the body has backed Tsipras’ motion to hold a referendum.

READ MORE: ‘We don’t need EU permission’: Greek parliament backs bailout referendum

27 June 2015

“The day of truth is coming for the creditors, the time when they will see that Greece will not surrender, that Greece is not a game that has ended,” Tsipras said, concluding his address to the parliament by calling on all Greeks to reject the “ultimatum” with a “resounding NO.”

Referendums have been used all across Europe as a way for people to directly express their will and have their voices heard, and Greece is fully in its right to conduct one PM Alexis Tsipras said during a late-night debate in parliament.

We don't need to ask permission from Mr. Schäuble or Mr. Dijsselbloem to let the voice of the Greek people to be heard. #Greece#vouli

— Alexis Tsipras (@tsipras_eu) June 27, 2015

Limerick says No / OXI to the Troika today. #IrelandstandswithGreecepic.twitter.com/mhHbovmpQv

— Greek Solidarity IRL (@Ireland4Greece) June 27, 2015

A mass protest in support of Greek government’s policy was held tonight in Madrid, attended, notably, by Pablo Iglesias Turrión, the leader of Podemos – a Spanish anti-austerity party.

Photos from ongoing pro-#Greece demo in Madrid #YoVoyConGrecia#MadridVaConGreciapic.twitter.com/STJgEdqHVJ" via @MadridEnPublico

— spyros gkelis (@northaura) June 27, 2015

During a press conference on Saturday, Germany’s finance minister Wolfgang Schӓuble said that Greece was likely to get into a “difficult situation” as the forthcoming referendum would not solve any problems. He added that Greece was still a part of the Eurozone as well as a part of Europe, and that Germany would do “everything to help Greece and to fight any possible contagion”.

Eurogroupe: déclaration des 18 http://t.co/82QhR3JLKEpic.twitter.com/bZ749FqsHb

— xavier delcourt (@x_delcourt) June 27, 2015

Irish fin min Noonan: referendum announcement "took the ground from under us". "The crisis has commenced" pic.twitter.com/Xs0O6Teh2X

— Alex Barker (@alexebarker) June 27, 2015

Jeroen Dijsselbloem said the creditors had decided not to extend the bailout as the Greek decision to break off the talks and call a referendum was “untimely” giving the lenders no reasons to “allow more time”. He added that the situation could have been easier if the Greeks had called the referendum earlier or recommended that the people to vote for the austerity measures.

He also expressed hope that the Greek parliament would take “a wise position” that might “lead to a different political situation.”

At the final Eurogroup press conference on Saturday, Jeroen Dijsselbloem, president of the Eurogroup, said that all Eurogroup members expressed “strong determination to ensure the strength of our monetary union” adding that the Eurogroup still consists of 19 members with all eurozone countries standing ready to help Greece and willing to use all instruments at their disposal even after the bailout program expires.

The Greek government will continue working closely with the ECB as well as the Greek central bank to ensure the stability of the country’s banks, said Greece’s deputy prime minister, Yannis Dragasakis, after the meeting with ECB chief Mario Draghi in Brussels.

On a briefing being held after the 18 Eurogroup’s members meeting, France’s finance minister, Michel Sapin, said that his country is ready to restart talks with Greece at any time with no one in the Eurogroup wanting Greece to exit from the euro. However, he also expressed criticism concerning the Greek referendum, pointing out that it would create problems – primarily for Greece itself.

Sapin: I will say with force - what happened today does not mean that #Greece has left the #Eurozone.

— Open Europe (@OpenEurope) June 27, 2015

Sapin: 18 countries said that #Greece is in the Euro and should stay in the Euro. That is the present situation.

— Open Europe (@OpenEurope) June 27, 2015

After the Eurogroup meeting on Saturday, Alexis Tsipras reportedly spoke to Angela Merkel and Francois Hollande via telephone, telling them that the referendum would “take place regardless of the Euro group decision,” as “democracy is of the highest order in Greece.”

“This is the birthplace of democracy. We are a sovereign country and will not be told what question to pose in this referendum,” Tsipras reportedly said in conversation with Merkel and Hollande.

Yanis Varoufakis emphasized that the forthcoming referendum is about the creditors’ proposals and “not about the euro” (i.e. the possible Greek exit from the monetary union) adding that “there were no provisions for the country to leave the euro.”

Yanis Varoufakis insisted that the deal could be still reached by Tuesday providing the creditors propose better terms as the Greek government “was leaving the door open for that proposal” and was ready to accept it if the terms were agreeable.

The Governing Council of the ECB will hold a meeting in due course to discuss the situation. The ECB is closely monitoring developments.

— ECB (@ecb) June 27, 2015

Yanis Varoufakis criticized the creditors for reverting to older and stricter bailout terms. He also attacked the Eurogroup saying that its refusal to extend the bailout up to the referendum date at Greece’s request would “certainly damage the credibility of the Eurogroup as a democratic union of partner member states” adding that “the damage will be permanent.”

At the press conference in Brussels, Greek Finance Minister Yanis Varoufakis said the government could neither accept the creditors’ proposals, because of the recessionary consequences, nor reject them as the government had no mandate for it. “Only the Greek people can decide it.” He added that the proposals could still be improved and that the Greek government would work on it “day and night.”

Varoufakis: We don't have mandate to reject the deal. We still have day-night-day for better agreement # Greece pic.twitter.com/T65o4CNlb9

— Derek Gatopoulos (@dgatopoulos) June 27, 2015

AFP reports the Eurozone officials have formally rejected Greece's application for a bailout extension. The talks are said to continue without Greece.

Breaking: Eurozone finance ministers reject Greek request for one-month bailout extension, officials say http://t.co/jd6A6jUl1n

— Wall Street Journal (@WSJ) June 27, 2015

Greece is set to ask the Eurogroup for a several-week extension to the bailout program deadline, to get ready for the referendum, the Finance Ministry said. Yanis Varoufakis, the ministry's head, says banks must stay open during the transition period and that the Central Bank will guarantee this.

Varoufakis also wants the EU to return €1.9 billion in profits on the ECB holdings of the Greek government’s bonds to pay the IMF on Tuesday.

Edward Scicluna, Malta’s finance minister, said Greece had decided to hold a referendum at the most undesirable moment, TASS reports. “Although every country has a democratic right to hold a referendum, it would have been better to have done it several weeks ago and not now – only a few days before the due date,” he said.

Jeroen Dijsselbloem, the Eurogroup president, told reporters before the emergency meeting in Brussels that he is “very negatively surprised” by the Greek government’s decision to reject the last proposals from the creditors and to hold a referendum. He called it “a sad decision” as it “closed the doors on future talks.” He said the Eurogroup would “talk about future consequences.”

Residents of Athens were queuing to withdraw money from banks across the Greek capital, Saturday, after Prime Minister Alexis Tsipras called a referendum, to be held on July 5, to allow a national vote on whether to accept or reject the demands of the international creditors.

Belgian Finance Minister Johan Van Overtveldt said the Eurogroup wasn’t planning to discuss the forthcoming referendum in Greece and would focus on “the most specific aspect of the talks between Greece and its creditors,” TASS reports. Johan Van Overtveldt also said he didn’t understand the aims of the Greek government as he regarded it senseless to hold a referendum on “something that the government opposes.”

The Eurogroup’s meeting will focus on Plan B for Greece after Athens’ decision to hold a referendum over the proposed austerity measures, said Finland’s Finance Minister Alexander Stubb. “Plan B” entails Greek default that threatens the country’s exit from the euro, TASS reports. “Plan B is now our Plan A,” Stubb said, calling the Greek plan for a referendum “a very bad surprise.”

#BREAKING: Eurogroup head says 'sad' Greece referendum move 'closes door' to further talks

— Agence France-Presse (@AFP) June 27, 2015

Greek Interior Minister Nikos Voutsis has called on all political parties to back the idea of a referendum on bailout terms offered by the country's foreign creditors for a cash-for-reforms deal that would stave off a looming default.

Voutsis told the parliament Sunday a unanimous approval for the referendum would make the country's position in negotiations stronger.

Eurozone finance ministers are still to meet as planned on Saturday in Brussels to discuss the deal with Greece despite Athens' decision to call a referendum, an EU official told Reuters.

The PASOK socialist party, which holds 12 of the 300 seats in the Greek Parliament, is demanding that PM Alexis Tsipras resign following his announcement of a national referendum on the bailout deal with the lenders.

“Since Mr. Tsipras cannot take responsible decisions, he must resign and let the people decide on the future of the country through elections,” the party said in a statement, dubbing the referendum move “dangerous adventurism.”

No money left at this Greek ATM in #athens#greece ... But the next one along worked fine... #greferendumpic.twitter.com/6clj2bPMFV

— Roland Jackson (@rolandfj) June 27, 2015

The Greek people should remain calm as banks will not close their doors, the leader of the government's junior coalition party said on Saturday.

"Citizens should not be scared - there is no blackmail," Panos Kammenos told local television. "The banks won't shut, the ATMs will [have cash]. All this is exaggeration."

Kammenos, who is also the defence minister, said that a pending referendum on Greece's negotiations with its international creditors will not put its future in the European Union at risk. (Reuters)

The Prime Minister Alexis Tsipras has already strained his mandate and cannot accept any more austerity conditions unless the nation backs the deal, Michael Pento, economic analyst and president of Pento Portfolio Strategies told RT.

“This Syriza government was put in place for one reason, and it was to end austerity,” Pento said. “[Tsipras] was elected with a mandate to end austerity, and he has already gone to the brink as far as to what the people will accept. And if he goes beyond that any further, he is going to lose power.”

“So now, all of this additional austerity that is being forced upon the Greeks by the Troika is going to go to a referendum,” Pento stated. “And I have to ask you: if any more austerity is imposed on the Greek people, how could that possibly pass the vote? So this is probably going to end in a very big disaster, it is going to be a separation where Greece goes back to the drachma, and it could be very disruptive to international markets, I’m afraid.”

Greece’s opposition Socialist party was quick to blame the Prime Minister for an inability to make decisions by himself and shifting responsibility on the public.

“Since Mr. Tsipras is unable to take responsible decisions, he ought to resign and let citizens vote for their future via elections,” PASOK’s leader Fofi Genimmata stated.

@frisogosliga We received 36% of the vote. For a momentous decision of this nature we felt the need to secure 50%+1. Any objections?

— Yanis Varoufakis (@yanisvaroufakis) June 26, 2015

The Greek opposition leader Antonis Samaras, who says his party has clearly “sided with democracy and Europe,” has rejected the idea of referendum.

“Tsipras brought the country to a total deadlock. Between an unacceptable agreement and a euro exit,” Samaras said, claiming the Greeks’ decision will effectively be a “Yes” or “No” to Europe.

26 June 2015

The ruling Syriza party urged voters to reject “the ultimatum by the lenders “ and “say yes to the proposal made by the government.”

Meanwhile the leader of the Independent Greeks party, and Tsipras’ junior coalition partner, has urged the voters to protect the country’s sovereignty as they did “in 1940 when Greek people decided to say no to foreign armies.”

“I call for all of the party to participate in this big celebration of democracy called a referendum and to vote 'No' – no to handing away our independence,” Panos Kammenos said.

The referendum will be held on July 5, a few days past the June 30 deadline, PM Tsipras has announced. In order to avoid a technical default, Athens will ask for a short-term extension on the bailout program and buy time to hold the popular vote.

Democracy deserved a boost in euro-related matters. We just delivered it. Let the people decide. (Funny how radical this concept sounds!)

— Yanis Varoufakis (@yanisvaroufakis) June 26, 2015

“These proposals, which clearly violate the European rules and the basic rights to work, equality and dignity show that the purpose of some of the partners and institutions was not a viable agreement for all parties, but possibly the humiliation of an entire people,” Greek Prime Minister Alexis Tsipras said in a televised address to the nation, as cited by Reuters.

Για εμάς, για τις επόμενες γενιές, για την ιστορία των Ελλήνων. Για την κυριαρχία & την αξιοπρέπεια του λαού μας. pic.twitter.com/mQYoq3chSV

— PrimeMinisterGR (@PrimeministerGR) June 26, 2015

The Greek PM has announced a national referendum on July 5 on the conditions of the debt deal with international creditors. It’s up to the Greek people, Tsipras said, to make a fateful decision on the country’s sovereignty, independence and future.

Don't forget the Greeks who never wanted the Euro (or even the EU) in the first place. Communists in Syntagma tonight pic.twitter.com/K0EHZJrNTf

— Barnaby Phillips (@BarnabyPhillips) June 26, 2015

"If we reach an agreement tomorrow depends on the institutions. We dont believe in 'take it or leave it' in Europe." pic.twitter.com/uBsd4j1jpO

— Stefan Leifert (@StefanLeifert) June 26, 2015

In the meantime, thousands of Athenians led by the Greek Communist Party have taken to the streets to protest against creditors’ proposals which would imply more austerity measures. Their slogans included: “No to the new agreement, rupture with lenders.”
The Greek Communist Party has also released a statement, in which they claim Greece has paid enough “for blackmail and mockery,” calling on Greece to break with the EU, “[its] capital and their power”.

Hundreds gather in Athens centre for anti-austerity rally WATCH LIVE http://t.co/OlpDfQRZifpic.twitter.com/krIsQxWeUf

— RT (@RT_com) June 26, 2015

Greek Finance Minister Yanis Varoufakis said Athens haad rejected the five-month extension offer from creditors, Reuters reported. He admitted that the Greek proposal also contains recessive measures, which are nonetheless aimed at higher incomes. Varoufakis added the creditors returned to harder demands, while six Eurogroup ministers said the initial bailout extension proposal was too soft.

READ MORE: Varoufakis: Greece owes agreement to whole eurozone, not only to itself

Greek Prime Minister Alexis Tsipras called an urgent cabinet meeting to discuss the bailout extension and the future deal with creditors.

The far-left Syriza bloc supported Tsipras’ decision to reject the bailout prolongation. Syriza MP Yannis Micheloyiannakis told the Guardian that acceptance of the bailout extension would be a great mistake, emphasizing that it was time to say “the big no”.

Greek labor minister Panos Skourletis told the Guardian that there would be no agreement until the sides reach consensus in all the issues adding that Greece “has agreed to nothing” so far. Skourletis also said that a cabinet meeting is expected to be held either this evening after Tsipras return from Brussels or on Saturday morning.

Commenting on the possible Greek exit from Euro, Skourletis said that they are not more afraid of it than of “something that would mean an end to our people and homeland.”

The Greek government turned down the creditors’ proposal concerning a five-month extension of the bailout as it would aggravate the crisis and end up in a new round of debt talks, a government official told Reuters. The government has neither “a popular mandate nor a moral right” to accept it, the official added, calling the conditions for the funding “deeply recessionary” and “inadequate” measures.
Athens’ proposal implying that the ECB would take over the Greek debt was also declined by the creditors.

The second EU finance ministers’ meeting has ended without reaching an agreement between Athens and its creditors. The next meeting is planned for Saturday.

The creditors are calling on Greece to "increase the rate of the tonnage tax and phase out special tax treatments of the shipping industry," according to the official document. The shipping industry is a major source of income for the country.
A separate document showed that Greece itself had proposed raising tonnage tax and implementing “an effective taxation framework” for commercial shipping.

Greek government official says proposal that ESM take over #Greece debt held by #ECB was rejected by institutions

— Noah Barkin (@noahbarkin) June 26, 2015

Slovak Finance Minister Peter Kazimir said although the talks were “realistically” expected to last until Sunday, it would be the last round of negotiations that would end either with an agreement or with Greek bankruptcy. In the latter case, EU ministers will discuss the technical details of the “one eurozone member bankruptcy.”

After the EU Summit in Brussels, Greek Prime Minister Alexis Tsipras sharply criticized the country’s creditors, saying the European Union was founded on the principles of “democracy, solidarity, equality and mutual respect,” and not on “blackmail and ultimatums.” He added that Greece expected mutual respect.

It's time for Greece to take a step forward, we have done ours, German Chancellor Angela Merkel said. The creditors have made a "generous" offer to Greece, according to her.

Greece’s creditors ready to unlock €15.3bn till November – media

Once again, here's the link to the Varoufakis interview on @morningireland@rtenews@CathalMacCoillehttps://t.co/Y9GokY8FPs#Greece

— Tony Connelly (@tconnellyRTE) June 26, 2015

EU leaders meet today in Brussels for the second day of a summit, where the problem of the Greek debt crisis is dominating. European Council President Donald Tusk and European Commission President Jean-Claude Juncker are expected to hold a press conference at 14:00 GMT.

German EU commissioner Günther Oettinger has said 'Grexit' is unavoidable if no solution is found in the next 5 days.

"We will do everything up until the 30th for the Greeks to show they are prepared to reform," Oettinger, the EU commissioner for digital economy and society, told Deutschlandfunk radio. "A 'Grexit' isn’t our aim but would be unavoidable if there is no solution in the next five days," he said.

READ MORE: German EU commissioner says 'Grexit' unavoidable if no solution found in 5 days

The Saturday meeting of the Eurozone finance ministers will be “decisive” in breaking the stalemate in the Greek debt negotiations, Angela Merkel told a news conference.

“We are saying, not without careful thought, that this Eurogroup is of decisive importance, taking into account that time is very short and that a result must be worked on,” she said, dodging a question about possible Plan B to avoid Greek default.

No agreement has been reached on the Greece debt yet, said European Council President Donald Tusk after the first day of the EU summit wrapped up in Brussels.

25 June 2015

Greece and its international creditors still face “deep disagreements,” Eurogroup President Jeroen Dijsselbloem said on Thursday, TASS reported.

While Greece’s latest proposals have been put forward at a Eurogroup session, sides failed to agree on a number of issues, the Eurogroup chairman said, adding that the next intersessional group meeting on the matter might happen during the weekend.

That's it for today. Institutions and Greece to continue work. #Eurogroup back later, but not today.

— Alexander Stubb (@alexstubb) June 25, 2015

German Chancellor Angela Merkel says there must be a debt deal with Greece before financial markets reopen next Monday, Reuters reports citing sources.

Speaking at a closed-door meeting with European center-right party leaders on Thursday, she also said that Germany "will not be blackmailed" by Greece.

An agreement between Greece and its international creditors is possible soon, the European Parliament head Martin Shultz said ahead of the opening of the two-day EU summit in Brussels.

“We hope, we are positively tuned that the completion [of the debt talks – Ed.] will follow,” he said, TASS reports.

The European Central Bank has limited a crucial lifeline for Greek banks known as the Emergency Liquidity Assistance (ELA), after the head of the Bundesbank told colleagues he had serious doubts about providing continued emergency funding to Greek banks, Reuters reports referring to people familiar with the discussion. ELA was increased 4 times since last Wednesday and is now about €89 billion ($100 billion). The lifeline is to help Greek banks that have experience record withdrawals.

READ MORE: ECB extends lending to Greek banks to €89bn to tackle run

As Athens is now proposing to cut its defense budget, the second biggest defense-to-GDP-spending NATO member after the US, John Butler, a chief investment officer at Amphora capital, tells RT why Greece might be putting forward such an option.

Greece has sent a revised reform plan to its creditors, ahead of another round of talks in Brussels on Thursday, Bloomberg reported. The EU leaders are gathered today in another attempt to agree on dealing with Greece’s multibillion euro debt.

Greek media reporting lenders told Tsipras last night as talks broke down: "from July 1st you will be on your own".

— Robert Nisbet (@RobNisbetSky) June 25, 2015

Greece and its creditors failed to reach an agreement on Wednesday. Another round of talks is scheduled for today. At 13:00 GMT EU leaders will start arriving in Brussels for a two-day summit.

READ MORE:Greece rejects ‘exceptionally generous’ counterproposals by creditors

A press conference by European Parliament President Martin Schulz is planned for 15:00 GMT. This will be followed by a press conference by European Council President Donald Tusk and European Commission President Jean-Claude Juncker scheduled for 17:00 GMT.

24 June 2015

Greece should maintain its level of military spending, which currently exceeds 2 percent of its GDP, said Secretary General of NATO Jens Stoltenberg at a press conference after the first day’s meeting with defense ministers of the alliance.

Five years of austerity plunged Europe in a spectacular crisis of which Greece is only the worst part, Richard Wolff, Professor of Economics, University of MA, told RT.

Greece should not limit its proposals to promises of more tax revenue and must present credible reform plans, said IMF chief Christine Lagarde in an interview published by French magazine Challenges on Wednesday.

“You can't build a programme just on the promise of improved tax collection, as we have heard for the past five years with very little result,” she told the magazine.

Germany appears to have prejudiced the chances of Greece striking a deal with international lenders as the Tsipras government has rejected the latest IMF proposals.

“Our impression is that there’s still a long way to go,” German Finance Ministry spokesman Martin Jaeger told reporters at a government press briefing in Berlin, Bloomberg reports. The creditors have made “exceptionally generous” concessions to the Greek government, and “it’s now up to the Greek side to show some movement,” he said.

The Wall Street Journal has published the IMF’s leaked counter proposals to Greece. Read HERE.

Weird how Tsipras and Greece are getting reprimanded on tax collection by Jean-Claude Juncker, the former PM of a corporate tax haven

— ndwillis (@ndwillis) June 24, 2015

— Derek Gatopoulos (@dgatopoulos) June 24, 2015

Greece has rejected counter-offers from the international creditors, reports RIA referring to Syriza sources.

The Greeks do not consider proposals which include changes to the public sector acceptable. The lenders insist on the abolition of tax exemptions for island inhabitants, which will be compensated by the increase of VAT, and the cancellation of tax exemptions on fuel for agriculture.

The IMF has put forward a revised plan for Greece, according to Greek media. The Fund has proposed a 1 percent cut in pensions, rather than the 0.4 percent the Greeks insist on. There is also disagreement over VAT returns which would amount to 1 percent of GDP this year.

European stocks fell on the Tsipras statement. The Stoxx Europe 600 Index was down 0.5 percent to 396.69 at 13:08pm MSK. The Greek ASE Index fell 3.1 percent, ending its four-day upward trend, and is the biggest drop among Western European markets.

Greek lenders didn’t accept reform plan, said PM Tsipras.

READ MORE: PM Tsipras says Greek creditors didn’t accept reform plan

Italian Prime Minister Matteo Renzi says the deadline for the Greece deal is the end of June, hinting that the EU summit on Thursday shouldn’t be seen as the last hope to resolve the Greek debt crisis. On June 5, Greece delayed its €300-million payment to the IMF until the end of the month and said it would repay the entire €1.6 billion due this month by June 30.

READ MORE: Greece puts off €300mn IMF payment till end of June

On Wednesday, Greece and its international creditors will make another attempt to meet halfway over Athens’ multibillion euro debt. Eurozone finance ministers will arrive in Brussels at around 15:30 GMT and are expected to hold a press conference at 16:00 GMT.

23 June 2015

Greek Prime Minister Alexis Tsipras is expected to hold meetings with heads of the European Commission, European Central Bank and the IMF on Wednesday, reported RIA quoting the government’s press service.

“The prime minister of Greece will once again tomorrow in the afternoon meet the representatives of the three institutions [EC, ECB and IMF – Ed.] – Juncker, Draghi and Lagarde,” said the statement.

Tsipras will propose new options for the Greek government regarding the agreement with the international lenders.

Athens is “closer than ever” to reach a deal with international lenders, said Greek negotiator Euclid Tsakolotos, Reuters reports.

Asked about IMF payment on June 30, he said that the deal will enable Greece to fulfill obligations and that any solution must be viable.

"We have one criteria in negotiations; that the solution be viable," he said. "The deal will have a funding part and that funding part will include at least a partial solution for the debt and therefore we will be able to fulfill our obligations."

Protests supporting Greece started in central London. Demonstrators gathered on Trafalgar Square to call for the cancellation of the country’s debt. According to the WarOnWant group's Facebook account, about 450 people were supposed to be present.

“If the EU challenges the democratic will of the people in order to allow the greed for wealth and power of financiers and corporations to prevail this represents a serious threat to the very principle of democracy,” Green Party member Molly Scott Cato, who is expected to make a speech at the meeting, said in a statement.

NOW: #London#Greece#Solidarity protest pic.twitter.com/8AR5NFYydt

— Evdoxia Lymperi (@EvdoxiaL) June 23, 2015

The deal with lenders will be backed by the Greek parliament and the people, said Minister of State Nikos Pappas, according to Reuters.

"It is clear than any agreement will require the majority which was formed by the elections. I assure you that the deal will be such that it will win the backing of the government majority and of the Greek people," he said.

IMF DISAGREES WITH GREECE ON CORPORATE TAX, VAT AND PENSIONS - EU SOURCES

— Morris Cabrioli (@insidegame) June 23, 2015

Pensioners are marching through Athens with demands to end austerity, according to reports on Twitter. At least 70 coaches with protesters have reportedly arrived.

Pensioners have flooded the streets of #athens from all over #Greece, main demand: no more austerity.. pic.twitter.com/UR4Ffeo5gf

— Janine Louloudi (@janinel83) June 23, 2015

The EU could easily give Greece debt reduction or even cancel it, Richard Wolff, Professor of Economics, University of MA, told RT.

The Greek Central Bank in collaboration with transnational company G4S provides constant cash inflow for the country’s ATMs, according to Kathimerini newspaper.

“Tuesday, Wednesday and Thursday were critical, really critical," Andreas Paterakis, the head of southern Europe for G4S, said, speaking of cash withdrawals from Greek banks.

He added that the situation had eased over the weekend.

Greeks withdrew over 4 billion euro ($4.5 billion) from the banking system last week amid concerns that the country was set to default.

Angela Merkel also spoke to the press, saying all EU leaders strongly backed the commitment to reach a solution for the Greek crisis, and that she wants to see the country stay in the eurozone.

She added that intensive work is necessary for negotiations to succeed, and that financial sustainability is part of the deal.

The ECB (European Central Bank) has expanded its ELA emergency funding for Greek banks (Emergency Liquidity Assistance) for the fourth time since June 17 in the face of massive cash withdrawals by customers, Bloomberg reported citing their sources. So far, the new limit remains unknown. The previous €1.9-billion increase was made on Monday, with the entire funding now standing at €87.8 billion.

The European Central Bank has granted Greek banks an estimated €2bn in fresh liquidity. That suggests the outflow of deposits has increased.

The run on the Greek banks is already exceeding the 2012 banking crisis in Cyprus. On Monday, €1.6 billion was withdrawn, while on Friday and over the weekend, savers took out €2 billion, the Financial Times reported.

However, despite the deadlock there were no signs of panic at Greek banks on Tuesday.

READ MORE: Greek bank run: Deposit withdrawals hit €3 billion in four days - media

Greece failed to reach an agreement with its international lenders on Monday, but hopes to secure a bailout deal this week to avoid a potential euro exit.

READ MORE: Greece’s ‘first real proposals’ raise hope of debt deal ‘in 48 hours’

Watch RT's Peter Oliver's latest report from Athens.

22 June 2015

President of the European Commission Jean-Claude Juncker said that the Eurogroup would reconvene on Wednesday, and he is confident that they would have the results by the summit on Thursday.

@tsipras_eu sortant discretement de #Eucopic.twitter.com/NTY9zU3pGu

— Jurek Kuczkiewicz (@jujikucz) June 22, 2015

The Eurogroup meeting lasted an hour, and Vladis Dombrovskis, the European commissioner in charge of the bloc’s currency, declared the Eurogroup is slated to meet again later this week.

As Christine Lagarde left, she told reporters: “We have a huge amount of work to do on Greece” over the next two days.

The #EuroSummit on #Greece has just started. http://t.co/8bgqsyHfUVpic.twitter.com/ARqKdIXaua

— Donald Tusk (@eucopresident) June 22, 2015

Yanis Varoufakis, the Greek finance minister, hurried inside when he arrived at the Eurogroup meeting and didn’t speak to the press.

Jeroen Dijsselbloem, president of the Eurogroup, arrived at the emergency meeting and confirmed the general pessimism.

“Is this the basis for a big breakthrough? I leave that up to the institutions [Greece’s creditors] to give their views first, but the Greek proposals have arrived very late,” Dijsselbloem told journalists.

German Finance Minister Wolfgang Schäuble told reporters the Eurogroup don’t have new proposals to work on.

“We haven’t received substantial suggestions from Greece,” he said, as quoted by the Guardian.

The IMF didn’t get anything either, Schäuble added.

WATCH LIVE: People gather at Syntagma Square for Pro-Europe/Anti-#Grexit rally #Greecehttp://t.co/Y1E2Qoomfypic.twitter.com/ykFobDbwP8

— RT (@RT_com) June 22, 2015

Angela Merkel cautioned that it might take a few more days to reach a debt deal with Greece.

“There are still a lot of days in the week in which decisions can be taken,” she said.

French President Francois Hollande echoed Merkel’s warning that the solution wouldn’t be found on Monday.

Juncker 'slaps' Tsipras ahead of last-ditch debt talks Watch More: http://t.co/sTgsy0TsiHhttps://t.co/kfTvF7JoYa

— Ruptly (@Ruptly) June 23, 2015

Alexis Tsipras arrived at the European Commission for talks with its president, Jean-Claude Juncker, and a press briefing.

“This is time for a substantial and viable solution that will allow Greece to come back to growth within the eurozone, with social justice and cohesion,” Tsipras told reporters.

News about the Greek proposals had a “magical effect on markets,” Connor Campbell, financial analyst at SpreadEX, told the Guardian.

“The main reason behind the positivity is hope that this latest Greek proposal contains the much needed concessions the country’s creditors have been looking for; described as ‘a good basis for progress’, already these proposals have been received better than the usual ‘insulting’ attempts at reform,” he said.

European stock markets surged at the start of trading hoping for the long-awaited deal on Greece.

In London, the FTSE 100 jumped by 72 points, or 1.1 percent, after the news of fresh proposals.

In Paris, the French CAC leapt 2.2 percent, Germany’s DAX was up 2.5 percent, and the Italian market grew by 1.8 percent.

The EU economic commissioner Pierre Moscovici said a solution to the Greek crisis will be found, calling Monday a “decisive, vital” day for Greece.

“We are moving in the right direction, we have solid ground for a deal, we just have to consolidate that today. I think that the political will of everyone to preserve the euro, to ensure that this single currency is irreversible, will win the day,” he told Europe 1 radio.

Thousands took to the streets outside the Greek parliament in Athens to demonstrate their support for the government’s anti-austerity policies and staying with the EU and its currency.

Among those attending were cabinet ministers and opposition lawmakers.

This is a fairly small but noisy gathering so far pic.twitter.com/KLevUGXAeC

— Jess Brammar (@jessbrammar) June 22, 2015

Greece is preparing for another tough day of crunch talks as EU leaders will scrutinize the country’s new proposals to tackle its debt problem. Greek Prime Minister Alexis Tsipras is meeting IMF chief Christine Lagarde, ECB President Mario Draghi, EC President Jean-Claude Juncker, and Eurogroup President Jeroen Dijsselbloem (chair of the eurozone finance ministers) at 9am GMT.

READ MORE: Greek debt crisis: Tsipras makes new proposals to EU leaders