July 12, 2015

Eurogroup Fails To Reach Deal, Gives Greece 24 Hours To Accept Draconian Terms

When earlier today we revealed the terms of the "leaked" Eurogroup statement, which as we also reported would fail to reach a deal for a Greek Bailout #3, we said "Germany and 5 other "northern" states want Greece out, but they generously offer Greece the opportunity to push the "Grexit" button itself (especially since it is only "temporary"). Unless, of course, Greece is willing to cede all of its sovereignty to Germany in which case it can generously stay."

That's pretty much what just happened when after a day-long meeting of the Eurogroup, the European FinMins were unable to reach a conclusion on the third Greek bailout and instead once again punted the revised term sheet, this time with absolutely draconian terms, back to Tsipras, and told him he has until tomorrow to agree to the terms, and until Wednesday to pass them into law, for talks to even begin!

SCHELLING: GREECE MUST DECIDE BY MONDAY IF IT ACCEPTS STATEMENT
STUBB SAYS GREEK LAWS MUST BE PUSHED THROUGH BY JULY 15
STUBB SAYS GREECE MUST PASS WHOLE PACKAGE TO START AID TALKS”

More details from Bloomberg: "The decisive point is that Greece must decide as of tomorrow whether it accepts this statement,” Austrian Finance Minister Hans Joerg Schelling says. "When all these conditions are fulfilled, a further program will be negotiated. Not before."

As for Finnish Finance Minister Alexander Stubb, he said that the Greek parliament has to approve whole package before bailout talks can start. "We made a lot of progress and were able to draft I think a very ambitous proposal and report for the heads of state and government."

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