The agreement on Greece arrived. The Belgian Prime Minister Charles Michel has tweeted a curt “Agreement”, to indicate the intended purpose after a eurosummit river in the night.
The confirmation came from the then EU President, Donald Tusk: “unanimous agreement”, he tweeted, “Everything is ready for the ESM program for Greece with serious reforms and financial support.”
“After 17 hours we reached an agreement and now Greece will be able to conduct negotiations in ESM”, the EFSF, the president said the EU Donald Tusk at the end of the summit. “The ESM will aid with strict conditions,” he continued, Tusk, adding that now the finance ministers will have to decide “urgently how to help Greece with a bridge loan “.
Tusk said that the ‘Eurogroup afternoon will already something of the bridge loan,” Finance ministers today to discuss a matter of urgency the financing needs of Greece in the short term “, said EU President .
” We could not accept the Grexit and Grexit there will be. It was the goal for which we have always fought, “he exulted, in press conference, the President of the European Commission Jean-Claude Juncker , which went on to say: ” I do not think is an agreement humiliating for the Greeks, and I do not think that other Europeans will lose face, is a typical European agreement. “
the President of the Euro Jeroen Dijsselbloem said that the agreement on Greece provides for the creation of a fund that “privatize state assets to make profits, and help reduce the debt and bank recapitalization.” Dijessebloem He stressed that or ra greek parliament must legislate very quickly: “There is still much to do.” The agreement, said the president of the Eurogroup, will recapitalize Greek banks with 25 billion euro immediately.
German Chancellor Angela Merkel said that the ‘reached unanimous agreement on Greece has more advantages than disadvantages: “This is a plan A,” he said, “a plan B is not necessary.”
Merkel explained that the third financial assistance for Greece will be of 82 to 86 billion, of which 24 billion to the banking system.
The Chancellor believes that the trust between partners eurozone ‘will be restored “if what has been agreed will be implemented on time and as agreed. The debt of Greece, for Merkel, will be discussed once there is a positive assessment of the aid program. Merkel has ruled out a haircut and said it will be the Eurogroup to finalize the details of the bridge loan.
The premier greek Alexis Tsipras , leaving the Eurosummit, said: “We avoided the transfer of our assets abroad,” explaining that “We fought hard” in Brussels and now we will do it in Greece against “the interests” consolidated.
Greece, said Tsipras, has struggled “to the end” for a debt agreement to ensure financial stability, “Today’s agreement maintains the liquidity and gives hope of recovery. We know that the agreement will be difficult to implement. But we got debt relief and medium term. “
‘agreement humiliating.” So Panagiotis Lafazaris, energy minister and leader of the radical wing of Syriza, defines the compromise reached in Athens in a statement on behalf of the “Platform of the left” parapolitika.gr published on the site.
The IMF director Christine Lagarde said: “It was laborious, but it is a good step to rebuilding trust, now we must continue to implement the commitments.”
The spread. The spread between BTP and Bund, with the agreement on Greece, rushes to 117.4 points from the opening 135. The Italian bond yield fell to 2.11%. Also down the spread between Bonos and Bunds, to 116, with the yield on the Spanish title to 2.09%.
The Bags. The Milan Stock Exchange opens sitting in the rise: the FTSE MIB gain 0.83% to 23,131 points.
Starting in the marked rise in the Paris Stock Exchange with the CAC-40 index rising 1 , 4% to 4,989 points.
Well even Frankfurt, which opens with the DAX + 1.5% at an altitude of 11,479 points.
The meeting of the river at night. It was a night of negotiations, sometimes dramatic. In one of the hardest moments of the negotiations, in the night, the greek prime minister Alexis Tsipras took off his jacket and handed it said, “Take this too.”
Thirty hours, fifteen of finance ministers and fifteen Heads of State and Government. Here are the numbers dell’eurosummit tonight to seek agreement. The Eurozone governments were deeply divided and the last plenary meeting after a series of smaller meetings, discussions on a compromise bill.
A draft conclusions have been prepared by Merkel, Hollande, Tsipras and Tusk. But several issues remain open from the role of the IMF in the third rescue and supervision of Greek economic policy and the creation of a fund in which the Greeks should transfer assets to 50 billion (but the Greeks expect privatization only 7 billion) to ensure privatization promises. From the text of this compromise is skipped reference Grexit, in favor of whom fought for the whole day yesterday Germany, Netherlands, Finland, Slovakia, the Baltic countries. In tough negotiations that front collided with France, Italy, Portugal and partly Spain. The political moment is highly dramatic. For the bridging loan needed to cover payments to the ECB (3.5 billion on July 20) and other subsequent EFSM should be used, that is, the European mechanism for financial stability set up in 2010 to tackle the crisis and is used to finance programs Ireland and Portugal.
In addition to the impact on financial markets, the ECB has to take the decision on the provision of liquidity to Greek banks and their institutions who may start the mechanism bankruptcy. It is no coincidence that Mario Draghi, ECB president, has repeatedly urged the Heads of State and Government to reflect on the risks to financial stability of the euro area output of Greece Economic and Monetary Union. “I need a credible prospect of agreement” to maintain or even increase the provision of emergency liquidity. One of the conditions for the aid, which is now being calculated between 82 and 86 billion Euros, is the greek parliament by Wednesday to approve laws on fundamental economic measures from the pension reform and the rise in VAT.
This will open for Tsipras a political issue because it is expected to be unable to have its majority and will have to resort to a widening of support for the government. The draft compromise on the table of heads of state and government is hard. In fact Athens will return to the times of the Troika with a control invasive and general public about the choices. It is a commissioner to whom Greece was also accustomed to the change of government five months ago. The economic measures are substantially the same as has been discussed for weeks and were largely been rejected by referendum greek.
Sources indicated that the Greek government will be able to present later today or tomorrow in Parliament measures. The negotiations highlighted the clash between two visions of the coexistence of States in the euro area, highlighted by the direct clash between Hollande and Merkel on the management of the dossier greek in the last hours, two different positions on the sensitivity and risk of Grexit both its aspects Financial and for its geopolitical aspects.
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