Greece reaches deal with creditors after all-night negotiations and agrees to vote reforms in parliament by July 15
- Key markets surged on the back of news that Greece, after 17-hour long talks, reached an agreement to start negotiations on a proposed €86bn bailout.
- Jeroen Dijsselbloem announced that the agreement included a €50bn Greece-based fund that will privatise or manage state assets; out of that €50bn, €25bn would be used to recapitalise the banks and some €12.5bn of the proceeds would go to investment in Greece. Alexis Tsipras said that after a “tough battle”, Greece had secured a “growth package” of €35bn and won debt restructuring. “The deal is difficult but we averted the pursuit to move state assets abroad… We averted the plan for a financial strangulation and for the collapse of the banking system”.
- “There will not be a Grexit”, said Jean-Claude Juncker and added that “In this compromise, there are no winners and no losers… I don't think the Greek people have been humiliated, nor that the other Europeans have lost face. It is a typical European arrangement”. Francois Hollande noted the agreement had allowed Europe to “preserve integrity and solidarity” and hailed Tsipras’ “courageous choice”.
- Six sweeping measures including spending cuts, tax hikes and pension reforms need to be enacted by Wednesday night and the entire package must be endorsed by parliament before talks can start.
- Eurogroup will meet later on Monday to discuss “bridge financing” that would cover Greece's short-term needs. Parliaments in several eurozone states will then have to approve the new bailout. “The road will be long, and judging by the negotiations tonight, difficult”, Angela Merkel said.
- The are fears that the terms imposed by creditors may put more pressure on and even threaten to fracture the Greek government.
- Please visit the below link to read the EU Summit Statement
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