Greek EU Update

Eurozone leaders propose 'compromise' for Greece bailout deal

Leaders of eurozone countries have continued talks after more than 13 hours of negotiations on a deal to save Greece from bankruptcy. The expected outcome is a "compromise" proposal.

A "compromise proposal" is on the table after more than 13 hours of talks between Greek Prime Minister Alexis Tsipras and eurozone leaders on a bailout for debt-stricken Greece.

Citing a European source, the AFP news agency said German Chancellor Angela Merkel, Greek Prime Minister Alexis Tsipras, French President Francois Hollande and European Council President Donald Tusk had proposed a "compromise" on the deal, but did not elaborate.

Compromise bailout plan?

The summit comes amid a looming July 20 deadline, when Greece is expected to repay 3.5 billion euros ($3.9 billion) to the European Central Bank (ECB).

Greece missed a June 30 deadline to repay the International Monetary Fund (IMF) 1.5 billion euros ($1.67 billion), making it the first industrialized country to default on a loan from the global monetary institution.

Talks between Greece and its creditors - EU, ECB, and IMF - shut down on June 26, when Tsipras announced a snap referendum on a proposal put forth by the financial institutions. Tsipras' announcement included a call for the country's citizens to vote "no" against the proposal.

Days after the referendum in which Greeks voted against austerity, the Greek government requested a new three-year bailout in the amount of at least 74 billion euros ($82.5 billion). However, some eurozone leaders, including German Chancellor Angela Merkel, have cast doubt over the Greek government's ability to enact a series of reforms that would unlock the much-needed funds.

'At all costs'

Upon her arrival at the summit, Merkel told the press that there would not be an agreement with Greece "at all costs."

"I know that nerves are frayed, but it has to be ensured that the benefits outweigh the disadvantages," Merkel told reporters as she arrived at the summit.

The German chancellor added that "the most important currency has been lost: that is trust and reliability."

'Time-out' contested

In order to pave the way for a third bailout plan, the German Finance Ministry offered two new proposals to the ire of some eurozone leaders.

One proposal asked for 50 billion euros ($55.7 billion) of Greek assets to be placed in a Luxembourg fund to later be privatized, while the other suggested a "time-out" for Greece, in which the Mediterranean country would be suspended from the eurozone for a period of five years if a deal could not be reached.

French President Francois Hollande said Paris would do "everything" to keep Greece in the euro and ruled out a "temporary Grexit." Germany's two proposals were met with fierce opposition online by social media users. On Twitter, #ThisIsACoup became the second top-trending hashtag globally and topped the charts in Germany and Greece.

Greek banks continue to face capital controls which were expected to be dropped by Monday. However, the lack of a final deal means Greece's future in the eurozone is still up in the air.

http://www.dw.com/en/eurozone-leaders-propose-compromise-for-greece-bailout-deal/a-18580345

Greece bailout talks - live updates+++

After around 17 hours of negotiations, eurozone leaders meeting in Brussels have reached a deal to save Greece from financial collapse and a probable "Grexit." Follow the latest developments here live.

All updates in Universal Coordinated Time (UTC)

08:37 European stock markets were buoyed by the news of the Greek bailout agreement. Frankfurt's DAX was almost 1.5 percent higher by mid-morning local time, while the CAC-40 in Paris was up by 1 percent. The euro currency was down slightly against the dollar.

08:02 European Council President Tusk released the text of his statement at the press conference held around an hour earlier to announce the deal. Perhaps in a bid to lighten the mood after 17 hours of what by most accounts were at times heated talks, Tusk spoke of an "agreekment."

07:57 French President Francois Hollande told reporters in Brussels that Greece would receive a restructuring of its debt as part of the agreement.

"There will be a reprofiling of the debt by extending ... maturities, and negotiations, undoubtedly, of interest rates - that is part of the deal," Hollande said.

He added that eurozone finance ministers would meet later on Monday to discuss setting up a short-term program to provide Greek banks with the liquidity needed for them to reopen.

07:45 Greek Prime Minister Alexis Tsipras told reporters that a restructuring of the country's debt was part of the deal. He said the accord included investment that would help counter recessionary trends in the Greek economy. He said that while implementing the agreement would be difficult, the deal had sent a message of dignity to all of Europe.

07:37 Chancellor Merkel comfirmed that a 50 billion euro ($56 billion) privatization fund was part of the deal and that it would be used by Greece to pay off debt. The negotiators agreed that 12.5 billion euros were to flow into investment. Merkel also stressed that "for us, nominal debt relief is out of the question."

07:24 German Chancellor Angela Merkel also held a press conference. The leader of Europe's biggest economy said she would recommend with "full conviction" that lawmakers in the Bundestag ratify the agreement. "The advantages [of the deal] outweigh the disadvantages," she said. She added that trust with Greece "needs to be rebuilt."

07:18 Dijsselbloem told reporters that the Greek parliament was to vote to approve the agreement by Wednesday.

07:16 "There will be no Grexit," Juncker said. "So we are happy with the result."

07:14 European Commission President Jean-Claude Juncker, European Council President Donald Tusk, and the head of the Eurogroup, Jeroen Dijsselbloem, began a press conference to speak about the agreement reached on Monday morning, after around 17 hours of negotiations.

06:59 European Council President Donald Tusk used his Twitter account to confirm that an agreement had been reached to allow Athens to receive assistance through the European Stability Mechanism, while at the same time implementing significant reforms.

http://www.dw.com/en/greece-bailout-talks-live-updates/a-18580396