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

Featured Stings

Me and China

European Investment Bank to borrow €70 billion in 2013

China confirms anti-state-subsidy investigation on EU wine imports

Dutch voters reject EU-Ukraine partnership and open a new pandora’s box for the EU

The EU Parliament endorses tax on financial transactions

EU’s guidelines on net neutrality see the light although grey areas do remain

European Commissioner for Youth wants young people to be at heart of policy making

Parliament sets up plan to fight the 3,600 criminal rings of EU

EU migrant crisis: Germany, France and UK to show the way. Will the rest of the EU follow?

Bundesbank’s President Weidmann criticises France and the EU. Credibility at risk?

WEF Davos 2016 LIVE: “If we do not do properly the Paris agreement, then all 16 remaining goals will be undermined”, UN Secretary General Ban Ki-moon cautions from Davos

Eurozone in trouble after Nicosia’s ‘no’

A Sting Exclusive: “Without climate, forget about peace!”, Swedish MEP Bodil Valero cautions from Brussels

Economic recovery won’t tackle youth unemployment problem

Eurozone to enter the winter…

Will ECB win against low inflation by not following Quantitave Easing?

The Chinese spirit

Why did Cameron gain absolute majority? What will he do now? Will he vote ‘yes’ in Britain’s in – out EU referendum?

Presentation of Juncker’s Investment Plan: Can 315 billion euros save the EU?

YO!FEST ENGAGES 8,000 YOUNG EUROPEANS IN FUTURE OF EU

Eurozone officials play with people’s deposits and minds

Global Citizen-Volunteer Internships

Why Eurozone’s problems may end in a few months

Eurozone recession subsides

MWC 2016 LIVE: Ingenu steps up efforts to build LPWA networks across the globe

IFMSA and IPSF on the Health of Migrants and Refugees

EU will not deliver on promises without democratic accountability

South Eurozone urgently needs fairer distribution of taxation burden

All talk but no action against fraudulent bankers

Eurozone: Statistics don’t tell the whole story

Crimea, a wicked game of political chess and a ‘big’ coincidence

European Youth Forum welcomes strong stance on human rights in State of the Union

US, Russia oblige each other in Syria and Ukraine selling off allies

Can the world take the risk of a new financial armageddon so that IMF doesn’t lose face towards Tsipras?

European Employment Forum 2013 and not European Unemployment Forum 2014

Glaringly false reassurances about the repercussions of the EU-US free trade agreement

European Banking Union: no one is perfect

Europe united in not supporting a US attack on Syria

Commission challenges Council over EU 2014 budget

Data show EU Economy in a stubbornly subdued state

IMF to teach Germany a Greek lesson

The West definitively cuts Russia off from the developed world

The impossible end of the war in Syria

Why do medical students need to go abroad to become a doctor in 2017?

The Swiss will pay dearly for voting out fellow Europeans

What the world will look like after the Iran and 5+1 deal; the US emerges as major power broker in Middle East

Zhua Zhou: Choosing The Future

Macron plans for Europe, Brexit and banks but vague on France

Will the outcome of the UK referendum “calm” the financial markets?

The West and Russia took what they wanted from Ukraine

“CETA is a game changer for major trade agreements”. The Sting reports live from EBS 2015

Russia and the West to partition Ukraine?

GREXIT final wrap-up: nobody believed Aesop’s boy who cried wolf so many times

COP21 Breaking News_05 December: Children Will Bear the Brunt of Climate Change: UNICEF

Why medicine is relevant to the battle against climate change

The West – the EU and the US – is writing off Turkey’s Erdogan

Fair completion rules and the law of gravity don’t apply to banks

ECB embarks on the risky trip to Eurozone banking universe

MWC 2016 LIVE: Freemium MVNO model a success, claims FreedomPop head

The Sting’s Mission

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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s