The time is up but the game is still not over for Greece: negotiations continue in anticipation of a new deal

The one man that opened the pandora's box in Greece and EU. Alexis Tsipras, the Prime Minister of Greece at the last European Council, (TVnewsroom, 26/06/2015)

The one man that opened the pandora’s box in Greece and EU. Alexis Tsipras, the Prime Minister of Greece at the last European Council, (TVnewsroom, 26/06/2015)

The deadline of the 4-month extension that the Greek government had received on February 20 just expired today. However, the Greek government and particularly the Greek Prime Minister Alexis Tsipras on a last moment decision to return to the negotiating table sent a letter to the institutions only hours before the expiration of the bailout programme.

The latter event mobilized the European mechanisms with the president of the Eurogroup to call for an extraordinary teleconference meeting of the Finance Ministers of the Eurozone but no agreement was made there. The decision of this meeting was to reconvene this evening in order to further discuss the proposal of the Greek government for a two-years 29.1 billion euros funding through the European Stability Mechanism (ESM).

This basically means that the programme expired with the Greek government not being able to repay its obligations to the International Monetary Fund (IMF) that were due yesterday. The anxiety keeps on lingering in Greece and the citizens are experiencing unprecedented events. Capital controls and closed banks for the third day create a very turbulent atmosphere.

Except for today’s crucial Eurogroup, the Council of the European Central Bank (ECB) is also metting in order to decide on Greece’s liquidity bank supply through the Emergency Liquidity Assistance (ELA).

Another proposal on the table

The second bailout programme belongs to history. The fact that Greece and its creditors (IMF, ECB, EC) didn’t come to an agreement regarding the terms and the measures that Greece had to undertake in order to receive financial support lead to this unpleasant event. It is unpleasant not only for Greece that faces horrendous economic problems but for Europe as a whole.

Eurozone’s Finance Ministers responded to Greece’s request for another programme extension with a clear NO and stated that they will examine the Greek proposal for a two-year financial support at today’s meeting.

The Greek Prime Minister signed and sent a proposal to the president of the Eurogroup and the chairperson of the board of governors of ESM making public that is asking for a 29.1 billion euros “loan” from the ESM in the next two years in order to meet the country’s internal and external obligations.  However, as stated by Alexander Stubb, the Finnish Finance Minister, “request for ESM-programme is always dealt with through normal procedures”; meaning that it requires the approval of national parliaments.

China cries out for a deal

It was last Monday when the EU-China summit took place in Brussels in order to promote the relations between the two sides. During that event, Mr Li Keqiang, the Chinese Premier, urged the EU to support Greece and keep it within the Eurozone. More specifically, Mr Keqiang stated that: “Let me reiterate that China always supports European integration and that China hopes to see a prosperous Europe, a united European Union and a strong euro. However, the issue whether Greece stays within the Eurozone not only concerns the stability of the euro, but also the stability and economic recovery of the whole world”.

Jean-Claude Juncker representing the EU at this business summit responded that he is doing his best in order to resolve the Greek debt crisis.  It has to be noted though that the president of the EC was consistently apologizing for rescheduling the summit a few hours forward and claimed that it was Greece’s fault since Mr Juncker had to attend a press conference for Greece at the same day.

ECB to decide on ELA

The Governing Council of the ECB is also meeting today in Frankfurt for the scheduled non-monetary policy meeting in which Greece will be the “hot” topic. Mario Draghi and the rest of the Council’s members will have to make a tough decision on whether to support the Greek banking system through ELA or stop the money supply with capital controls remaining in the country.

Although Germany states through the Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble that they want to help Greece and continue negotiations, their advice to Mario Draghi is not to provide liquidity to the Greek banks by raising the ceiling of ELA since the second programme expired.

This sounds quite oxymorous and blackmails a country which is at a “default” situation. The latter is reinforced by the fact that the rating agency Standard & Poor’s downgraded the four systemic Greek banks (Eurobank, Alpha bank, Piraeos bank and National Bank of Greece) to “Selective Default” from “CCC” due to the recent capital controls and bank holidays.

The next day for Greece

Everything seems that nothing can stop this referendum next Sunday. However, the question-deal is not going to be on the table for the Greek government after July 6 as the European institutions claim. Greece’s creditors are willing to negotiate in order to keep Greece inside the bloc and euro but this will happen only after the referendum according to Angela Merkel.

All in all, the Greek people have better stay calm in these historic moments and evaluate with credible information the situation by taking the most out of the talks from the two sides.

The stakes are too high now for every Greek citizen. She is called to decide on the future of the next generations to come.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

EU-US trade deal: Europe to Americanize its social model?

Switzerland to favour EU citizens in immigration quotas as the risk of a new referendum looms

Why climate change matters for future health professionals

GSMA Outlines New Developments For MWC19 Shanghai

Angola’s President João Lourenço calls for stronger EU-Africa cooperation

Sweden has invented a word to encourage people not to fly. And it’s working

EU Budgets: Europe hoping for Xmas gifts

How banks should prepare for robots going rogue

Electronic cigarette – is it really a safer alternative to smoking?

These countries are leading the charge to clean energy

End fossil fuel subsidies, and stop using taxpayers’ money to destroy the world: Guterres

Amid continued suffering in Yemen, UN envoy welcomes reports of reduced violence

Here are three ways Africa’s youth are defeating corruption

The psychology of pandemics

Syrian Government’s ‘different understanding’ of UN role, a ‘very serious challenge’ – Special Envoy

Talent is worldwide. Opportunity is not. How can we redistribute it?

The 10 most common types of plastic choking Europe’s rivers

Is China about to launch its own cryptocurrency?

Doctors vs. Industry 4.0: who will win?

Employment and Social Developments in Europe: 2018 review confirms positive trends but highlights challenges, in particular linked to automation and digitalisation

It’s not your imagination, summers are getting hotter

Killing of Egyptian peacekeeper in Mali ‘may constitute war crimes’ Guterres warns, urging ‘swift action’

Spanish vote – bad luck for Greece: Does Iphigenia need to be sacrificed for favourable winds to blow in Eurozone?

‘Historic moment’ for people on the move, as UN agrees first-ever Global Compact on migration

Europe must regain its place as world leader in digital technology

These companies can recycle nearly anything, from cigarette butts to fax machines

Arrest of three Libyans wanted for grave crimes ‘would send strong and necessary message’ to victims, urges top Prosecutor

What does strategy have to do with a platform approach?

Guatemala Dos Erres massacre conviction welcomed by UN human rights office

Skeptic France about Trump-Juncker trade deal favoring German cars; EU’s unity in peril

This plastic-free bag dissolves in water

Why strive for Industry 4.0

Is Erdogan ready to tear down the bridges with Europe and the West?

Parliament adopts its position on digital copyright rules

Inclusion and diversity isn’t just good for employees – it’s good for the bottom line

China by numbers: 10 facts to help you understand the superpower today

The Indian case: health policies need to keep pace with public health literacy

Eurozone: Sovereign debt decreases for the first time since 2007

This solar-powered car lets you drive for free

‘Comprehensively include migrants’ or sustainable development won’t happen, warns General Assembly President

One in three fish caught never gets eaten

The US calls off globalization, targets Germany. Paris offer to Berlin comes at a cost

Nicaragua must end ‘witch-hunt’ against dissenting voices – UN human rights experts

‘InvestEU’ programme: big boost for jobs, growth and investment

The future of science could be in your gut. Here’s why

Access to health in the developped and developing world

Mosul’s ‘3D contamination’ adds to challenges of deadly mine clearance work

Parliament to ask for the suspension of EU-US deal on bank data

How did Facebook fool the Commission that easily during the WhatsApp acquisition?

Peru should help more young vulnerable people into work

Traditional finance is failing millennials. Here’s how investing needs to change

G7 summit: Trump Vs. G6 leaders on trade and climate change

Security Council approves ‘historic’ political Haiti mission, ending UN peacekeeping role in the country

A Sting Exclusive: Towards better business opportunities for the EU and its neighbours, Commissioner Hahn live from European Business Summit 2015

Unanswered questions for Europe’s youth in President Juncker’s State of Union

Vegans in France are using extreme tactics to stop people eating meat

The Eurogroup+ is born to govern the EU Banking Union

This project is turning abandoned fishing gear into volleyball nets

Deep fakes could threaten democracy. What are they and what can be done?

IMF’s Lagarde: Estimating Cyber Risk for the Financial Sector

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s