Brussel negotiations were being carried on, well past the deadline with its 19 Eurozone partners. Prime Minister Alexis Tsipras and European leaders were still in discussions, early Monday morning, on how Greece would guarantee the measures proposed, in exchange for a rescue package to prevent the banks from collapsing.
You have to wonder what financial experts are whispering about – is it about the bailout or is it about Greece’s euro currency. Euro partners, like Germany, have warned that if Greece doesn’t concede to their offerings, that the country could be temporarily forced from the euro system, which the country has been a part of since 2002.
The obstacle appears to be the terms of the austerity package and its timing. The leaders are discussing Greece’s request for a 3-year, 53.5 bn-euro financial package, but other Eurozone leaders report that they believe that Greece should have more funding, thus they believe tougher measures should be implemented, after all, this is Greece’s third bailout in five year.
Prime Minister Tsipras wants the ECB to help the banks, but, creditors object to this idea, until the Parliament of Greece, passes certain measure packages. It is feared that If the banks reopen, that they will not have cash to operate. The same subject matter remains on the negotiations table, which is the euro currency.
Talks with German Chancellor Angela Merkel and French President Francois Hollande on currency stability has the German Chancellor stating that “the most important currency has been lost: that is trust and reliability, while French President Hollande insists that it is vital to keep Greece in the euro because “it’s Europe that would go backward – and that I do not want.”
The latest tweet by Donald Tusk, President of the European Council reports that a unanimous agreement was reached over an ESM program for Greece, in exchange for serious reforms. Certain European sources are reporting that the 50 billion-euro fund in Luxemburg is no go, as well as the threat of a temporary ‘time out’ from the Eurozone, all of which allows the possible funding being provided immediately. The Council stated that if the Parliament agrees to all of the measures asked for, then there is no need for a new 28 country, European Summit on Wednesday.