Former Greek finance minister avoids jail over Swiss bank case – as it happened
George Papaconstantinou receives one-year suspended sentence after judges rules he tampered with the Lagarde List of suspected tax evaders
- Latest: Former Greek minister convicted over Lagarde List
- Greece may run out of cash on April 20
- UK inflation hits 0.0% for first time
- Larry Elliott: What it means to you
- Greece to present reforms by Monday
6.07pm GMT
OK, that's all for tonight. A quick reminder of the key points.
meeting with @tsipras_eu . #Greece needs space to breathe and ownership for reforms that go to the roots pic.twitter.com/tI1XHuAZZK
5.20pm GMT
Back to the Athens courtroom....
And a court official told Helena that:
"This is as close to a acquittal as would be possible in the circumstances,"
5.18pm GMT
One other piece of news....The Financial Times is reporting that the European Central Bank is set to make it illegal for Greek lenders to add to their holdings of government debt.
That would appear to make it impossible for Greek banks to provide Athens with extra funding to tide it through its cash flow crisis.
The governing council of national central bank governors and top ECB officials have waved through a proposal tabled by supervisors at the central bank to make legally binding their recent warnings to Greek banks against loading up on their sovereign's short-term debt, or t-bills, according to two people familiar with the matter.
#ECB getting TOUGHER on Greek banks. Warnings to stop loading up T-Bills are now legally binding, according to @FT: http://t.co/JuyWs2by26
5.11pm GMT
Athens special court has just handed down a one year suspended sentence to former finance minister George Papaconstantinou, reports Helena Smith.
Court sources have told Helena that of the 13 judges, five (including the presiding judge Nikos Passos) were in favour of acquitting Papaconstantinou over charges that he had tampered with the list of Swiss bank account holders.
#Greece Special tribunal in Athens has handed ex fin min #GeorgePapaconstantinou a one-year suspended sentence
4.51pm GMT
#Greece court has adjourned 2 deliberate over sentencing of former finance minister #GeorgePapaconstantinou; prosecutor proposed 4 ys
4.50pm GMT
The court (still deliberating over the sentence) accepted George Papaconstantinou's "prior life" as a mitigating factor.
Addressing the wood-panelled court, the prosecutor proposed a sentence of four years.....
4.35pm GMT
Court officials say it is almost certain that George Papaconstantiniou will not "spend a night" in jail, despite being convicted tonight of tampering with the Lagarde List.
Helena Smith our correspondent says the former minister smiled when the presiding judge read out the judgement.
@AP BREAKING: Ex-FinMin Papaconstantinou found guilty of misdemeanor in Swiss bank case, will not serve jail time #Greece HT @ElenaBec
4.29pm GMT
Greek Court officials have now adjourned to deliberate on sentencing, following George Papaconstantinou's conviction a few moments ago.
Our Helena Smith has been told that as the tampering charge is a misdemeanour and not a felony, it will be regarded as a lighter crime. Papaconstantinou is the first cabinet minister to be brought before a special tribunal in more than two decades.
4.27pm GMT
Breaking News! Former Greek finance minister George Papaconstantinou has been found guilty of tampering with the infamous "Lagarde list" of suspected tax evaders by special criminal court.
Papaconstantinou faces up to 5 years in jail but will probably not serve any time behind bars. Sentence to be announced soon.
4.14pm GMT
After a few days out of the spotlight, Yanis Varoufakis surfaced at the presidential palace in Athens today for talks with Prokopis Pavlopoulos.
Pavlopoulos said he plans regular meetings with Greece's finance minister. That may dampen media chatter that Varoufakis is been sidelined after not joining Tsipras on his Berlin trip.
3.06pm GMT
The atmospherics may have improved dramatically after last night's talks but the Greek prime minister's still faces the enormous challenge of "changing the narrative" among his own constituency, writes Helena Smith.
"The hope is that both [Schauble and Varoufakis] can follow suit so that a constructive dialogue can return to the euro group of finance ministers instead of the bitterness and wrangling that we have seen during the past weeks."
"Dissent within Syriza is going to be the big challenge for the Greek prime minister. The leadership he has shown in Berlin will have to be repeated in terms of explaining the reality on the ground in Athens, the need for structural reforms, to his own rank and file."
3.01pm GMT
DIJSSELBLOEM SAYS PROCESS WITH GREEKS SLOWLY 'SPEEDING UP'; DIJSSELBLOEM SAYS GREECE IS ABLE TO FUND ITSELF NOW
3.00pm GMT
Another Reuters newsflash, suggesting signs of progress...
2.50pm GMT
Speaking of Greece.... a verdict is expected soon in the trial of former finance minister Giorgos Papakonstantinou.
Papakonstantinou is accused of removing the names of relatives from the Lagarde list of suspected Greek tax evaders, a charge he denied.
2.47pm GMT
A Greek government insider has told Reuters that the country would run out of funds on April 20th without additional help from its lenders.
That suggests Greece can handle the next hurdle; the a467m due to the IMF on April 9th. but would then be close to the brink.
Greece To Run Out Of Money By April 20 Without Fresh Financial Aid - Source Familiar With Matter
2.26pm GMT
The Chancellor of the Exchequer, George Osborne, has warned MPs that the risk of Greece leaving the euro is rising.
Testifying to the Treasury committee, Osborne claimed that the "ill will" around the table at recent EU meetings has been palpable.
Osborne: Risks of Greece leaving [euro] is rising because the ill-will around the table is palpable pic.twitter.com/HTz6nzLTTb
@George_Osborne "Greece shouldn't have joined the euro" #Grexit
Once you have established the fact that a pegged currency can be broken".. the markets and others will seek to test that.
Greece is not the only weak economy in the eurozone.
2.10pm GMT
New home sales rise to seven year high http://t.co/xEiOvdbXsK pic.twitter.com/SCP6DVU9ev
2.05pm GMT
More US data just hit the wires.... and it's encouraging.
New home sales have jumped by almost 8% to 539,000, the most in almost seven years.
New home sales hit 539,000 in February, versus 470,000 estimate: http://t.co/Nd3TJ9vkoZ
Fastest new home sales since March 2008 in US
2.03pm GMT
Two pieces of new economic news have given rather different views of the US economy.
First, growth in America's factory hit a five-month high, echoing the strong data from the eurozone this morning.
At 55.3 in March, U.S. Flash Manufacturing PMI hits five-month high http://t.co/xrXKxVPsDC http://t.co/Fo9NCEzrmz
Richmond Fed: Mar Manufacturing Index -8 Vs Feb 0. The dollar is, like, pic.twitter.com/mxOTdXH3Bh
1.40pm GMT
Greek media are reporting that a Euro Working Group [made up of technical officials] will assess the country's situation on a conference call tomorrow morning.
#Eurozone officials confirm to @euroinsight: EWG deputies to assess #Greece's liquidity situation Wednesday https://t.co/NiSMPxLx3M
Euro Working Group (EWG) on Wed morning, according to MoF sources (via @capitalgr) #Greece #economy #ec #ecb #imf #eurogroup
1.27pm GMT
And.....the euro is continuing to slide.
EURUSD today is a fun one. pic.twitter.com/JTJuiVfFGZ
1.13pm GMT
The US dollar experienced dramatic swings as traders digested the news that US inflation rose to zero last month.
The fact that core CPI (excluding volatile food and energy items) edged up to 1.7% from 1.6%, helps explain that the disinflation-bound trend in US retail prices is largely driven by the oil declines, which suggests that a continue stabilization in energy prices could lift headline CPI back towards the 1.0% level.
Yet, it would take an unlikely sharp and prolonged rally in oil prices in order for headline CPI to approach the Fed's 2.0% objective and pave the way for a lift off in US interest rates.
12.56pm GMT
Yesterday's Merkel-Tsipras meeting makes the front pages in Germany too:
#Greece Tsipras-Merkel meeting on the front pages in #Germany pic.twitter.com/1ITRFThwfl
12.55pm GMT
Over in Greece, the media reaction to last night's meeting between Alexis Tsipras and Angela Merkel is generally positive.
"The government is trying to open positive paths for the people so that their income can return to pre-memorandum levels. It's a titanic quest and it will be achieved whatever the pressures, threats, blackmailing and difficulties."
12.39pm GMT
Just in: US inflation was zero on an annual basis last month, matching the UK's reading this morning.
But in America's case, that's actually an increase from the -0.1% CPI recorded in January.
Headline inflation rate now the same in US and UK
Dollar index shoots higher after that CPI report pic.twitter.com/9MFDvzYmeE
12.22pm GMT
Alexis Tsipras has also visited the Holocaust Memorial in Berlin today, as part of his first visit as Greek prime minister.
12.13pm GMT
The FT's Gideon Rachman has heard that Germany could provide some financial aid to Greece, in recognition of the horrors of the second world war.
German official tells me reparations to Greece are possible. But must be targeted at communities that suffered, not general govt budget
12.05pm GMT
Greece's prime minister tweets that he's met with the leaders of Germany's left-wing opposition parties, a day after his talks with Angela Merkel.
Meeting earlier today in Berlin w/@katjakipping @GregorGysi of @dieLinke @europeanleft #Greece #Syriza pic.twitter.com/j2gNcxoGYw
11.54am GMT
Time to turn back to the Greek debt crisis.
And German foreign minister Frank-Walter Steinmeier has told reporters in Berlin that relations between the two counties have improved.
"I'm pleased that the atmosphere in German-Greek talks in recent days has changed and improved significantly.
Meeting earlier today with the German Foreign Minister, Frank-Walter Steinmeier #Greece pic.twitter.com/Q81pbl9yGj
11.33am GMT
Here's Angela Monaghan's news story on UK inflation:
Related: UK inflation hits zero for the first time on record
Related: Inflation falls to 0%: what does it mean for the UK economy?
11.32am GMT
The TUC is also concerned about the underlying state of the UK economy.
General secretary Frances O'Grady said:
"Zero inflation is a reminder of how fragile the economy remains. Stagnating prices are not a sound foundation for the strong and sustained pay rises that workers have waited so long for.
"With deflation on the horizon, the Chancellor's plans for extreme cuts after the election look more and more like a suicide note for the UK economy."
11.23am GMT
With the election just 44 days away, the opposition Labour party isn't giving the government much credit for Britain's inflation data.
"Inflation is falling around the world because global oil prices have plummeted, yet in Britain wages continue to be sluggish.
"Working people are 1,600 a year worse off under this government. And another Tory VAT rise if David Cameron wins the election will hit living standards and send prices rising again.
11.17am GMT
Some historical context:
11.01am GMT
The prime minister and chancellor shouldn't be too complacent about the dangers of deflation, argues Ranko Berich, Head of Market Analysis at Monex Europe.
He points to the fact that price rises have slowed, or started falling, across the economy (see earlier chart).
George Osbourne and David Cameron have been quick to write off the 'noflation' as purely a symptom of lower fuel prices, pointing to the positive aspects of low inflation for British households.
While this argument certainly has some weight, today's data also showed year-on-year deflation in five categories, including food, as well as slower price increases across many others. This suggests that the UK could well be succumbing to the wave of low inflation that has swept the eurozone, and a sustained period of deflation remains a key risk.
10.54am GMT
David Kern, Chief Economist at the British Chambers of Commerce, also predicts that Britain's inflation rate will fall below zero:
"These historically low figures reinforce our belief that inflation will fall into slightly negative territory in the coming months, before returning to a positive trend before the end of the year. However, we remain convinced that there is very little risk of a long period of deflation.
"Inflation in the service sector, which accounts for 80% of the UK economy, remains firmly above the government's 2.0% target, and core CPI inflation in February was 1.2%. Together with higher earnings, lower inflation is boosting people's spending power, and will contribute to economic growth in the year ahead.
Here's a chart showing CPI inflation over the last 10 years . It hit a record low of zero in February. pic.twitter.com/94fLg0Pmrl
10.48am GMT
Danielle Haralambous, UK analyst at the Economist Intelligence Unit, agrees that we should welcome this period of no-flation.
"The likelihood that we are on the verge of a period of deep and prolonged deflation in the UK remains slim.
Recent deviations in inflation from target have been largely driven by lower food and energy costs, which will provide a welcome boost to real household incomes and support prospects for the demand-driven recovery."
10.46am GMT
Spot the pattern:
The CPI figures: it is not just energy, IMHO. Everything appears to be <2% pic.twitter.com/rwLZtIGYnQ
10.44am GMT
A wider measure of inflation, the retail prices index, also fell last month.
But unlike CPI, RPI showed that prices rose by around 1.0% annually. That's the lowest since November 2009.
10.26am GMT
The drop in inflation has driven the London stock market to a new record high.
The FTSE index has jumped by another 24 points, or 0.35%, to 7062.
Related: Interest rates may be cut, suggests Bank of England chief economist
10.15am GMT
The elimination of inflation, however temporarily, is simply good news for the UK, argues Rob Wood of Berenberg Bank:
Cheaper imports, petrol and food are unmitigated good news for consumers and growth, which shows up in high consumer confidence.....
The UK can sit back and enjoy the purchasing power boost that low inflation today is bringing without fearing any of the sillier claims of what 'deflation' might bring, like households delaying purchases on the expectation that prices will be even lower tomorrow.
10.11am GMT
The drop in inflation to zero means that living standards are going up, and interest rates are going nowhere soon. And it may mean that pay rises will be less generous.
Britain is on the cusp of a period of deflation. It is the first time on record that inflation, measured by the consumer prices index, has hit zero, since the measure was created in 1989. This has three implications, two of them obvious, one less easy to assess.
The first is that living standards will rise. Average earnings are growing by just less than 2% a year, so with prices not rising at all people will find their wages and salaries go further.
10.06am GMT
"We are looking for a couple of months of deflation in the UK", predicts Jeremy Cook, chief economist at the international payments company, World First.
10.03am GMT
Enjoy no-flation while you can.
The CBI's director of economics, Rain Newton-Smith, reckons it's a temporary situation:
"Despite inflation dropping to zero, it is unlikely we will see falling prices for a prolonged period, particularly as the pressure from lower oil prices fades.
9.57am GMT
Chancellor George Osborne gives some of the credit to the falling oil price.....
Inflation at zero is a first for the British economy. Low inflation due to falling oil prices is good news for family budgets
Prices are frozen & as the recovery from Labour's Great Recession strengthens, their economic argument has literally come to nought
9.54am GMT
The drop in inflation means that real incomes in the UK continues to rise, after declining for several years.
British pay packets are rising by 1.8% annually (or 1.6% excluding bonuses) according to the latest data. So with inflation at zero, so are real incomes.
Inflation is running at 0% - the lowest on record. It's good news for family budgets and a sign our long term plan is working.
9.47am GMT
Economists reckon that the UK is now heading into a period of negative inflation:
Inflation at 0%. But it's not so much the level as the trajectory that's striking. #noflation pic.twitter.com/I6eIZuEjLT
Zero inflation in February is lower than the markets expected and virtually guarantees a period of temporary deflation in coming months.
9.43am GMT
This table confirms that food and transport costs dragged inflation down to zero:
9.41am GMT
The last time UK CPI was this low, Lonnie Donegan was number 1 with "My Old Man's a Dustman". March 1960.
9.39am GMT
This is the first time on record that the consumer prices index has hit zero, according to figures going back to 1989.
The ONS suggest that inflation may have been lower in 1960, though, according to Reuters.
9.38am GMT
The drop in inflation was caused by a big drop in food prices, which fell by 3.4% in the year to February.
Motor fuels tumbled by 16.6%, due to the sharp fall in oil prices in recent months.
"price movements for a range of recreational goods (particularly data processing equipment, books and games, toys & hobbies), food and furniture & furnishings."
9.34am GMT
This is a bigger fall in inflation than expected.
Economists had predicted that the consumer prices index would slide to just 0.1% in February, down from 0.3% in January. But instead, CPI has come in at exactly zero.
9.30am GMT
Breaking: The UK inflation rate has fallen to zero for the first time on record.
More to follow.....
9.25am GMT
France is lagging behind the rest of the eurozone for job creation, and output growth, according to Markit's new PMI survey.
9.21am GMT
Economists are cheering the news that the eurozone private sector is growing at the fastest rate since May 2011:
Strong PMIs in Eurozone and Germany indicate that QE is working.
CHART: Euro-area Q1 #PMI suggest fastest growth in 15 quarters. New orders/stock ratio highlights recovery momentum. pic.twitter.com/npQJaVcz03
FYI, today's decent #Eurozone #PMI and solid #Germany data point to beneficial combined impact of weaker #oil ,depreciated #Euro & @ECB #QE
9.12am GMT
The eurozone recovery is alive and well.
Firms across the euro are growing much faster than expected this month, according to Markit's latest survey of the sector.
"The eurozone's economic recovery gained further momentum in March, with the PMI hitting its highest for almost four years. The improvement provides welcome news to a region awaiting signs that the ECB's quantitative easing is stimulating the real economy.
The survey data therefore indicate that the ECB's quantitative easing has been started at a time when the eurozone's economic upturn is already starting to gain traction. This augurs well for the region to enjoy further improvements in business conditions as the year proceeds, helping drive greater business investment and hiring, and thereby ensuring that the recovery becomes sustainable.
Eurozone PMI data better then expected. ThanQE Draghi
8.43am GMT
The euro has jumped half a cent against the US dollar on the back of the news that the German economy is accelerating.
#Euro nudges to fresh day high $1.0998 after upbeat German PMIs. German Mar Composite PMI Flash 55.3 vs 55.0 expected pic.twitter.com/GIdS4b3QyE
Very strong German composite PMI. Don't act as you're surprised.
8.41am GMT
Strong economic data from Germany - its private sector is growing at the fastest rate in eight months.
The German composite PMI has risen to 55.3, from 53.8 in February - meaning 23 months of consecutive growth. Manufacturing and services both grew at a faster rate.
The composite #PMI of #Germany rises to 55.3 proving that it's economy is in rude health and does not need #ECB #QE
8.25am GMT
Hopes that France's economy was recovering have just taken a knock.
Markit's monthly healthcheck of the sector shows that growth in France's private sector slowed this month.
CHART: France struggling to catch euro-area recovery wave as March #PMI disappoint. Still, growth accelerated in Q1. pic.twitter.com/IF05nBkTdA
8.21am GMT
Billionaire philanthropist George Soros has declared there's a 50:50 chance that Greece will leave the eurozone, due to the mistakes of the past.
"It's now a lose-lose game and the best that can happen is actually muddling through....Greece is a long-festering problem that was mishandled from the beginning by all parties."
8.12am GMT
Greece's three-year government bonds are strengthening, a little, on the back of today's comments from Athens, and from Martin Schulz:
#Greece's yields drop as EU's Schulz sees deal with #eurozone likely this week. http://t.co/8m2gsl6YDh pic.twitter.com/XiXoBTvVdD
8.07am GMT
Another optimistic sign - European Parliament chief Martin Schulz has predicted that Greece and its creditors could secure a breakthrough this week.
He told Italy's La Repubblica that:
"I think by the end of this week a new deal will be reached that should be sufficient to release the most urgent financing,"
7.58am GMT
Alexis Tsipras is still in Berlin, and due to meet with the leaders of Germany's opposition Left and Green parties.
7.58am GMT
Germany's Deutsche Welle newspaper reports that Angela Merkel and Alexis Tsipras spoke until almost midnight about the situation in Europe, at their 'working dinner'
Chancellor Merkel's spokesman Steffen Seibert told reporters late last night that:
"The chancellor and the Greek prime minister had a comprehensive discussion in a good and constructive atmosphere about the situation in Greece, the procedures of the European Union and future German-Greek cooperation,"
7.43am GMT
News from Athens: Greece will present a new reform programme to its creditors by next Monday, potentially unlocking bailout funds and averting the risk of bankruptcy.
The news comes less than 12 hours after prime minister Alexis Tsipras and Angela Merkel ended their talks in Berlin.
Greece will present its proposed package of reforms to its euro zone partners by next Monday in hopes they will release much needed cash, its government spokesman said on Tuesday.
"It will be done at the latest by Monday," government spokesman Gabriel Sakellaridis told Mega TV.
Greece plans present its proposed package of reforms to the eurogroup on Monday. So, see everyone in Brussels for a late night Tuesday? Mon?
7.37am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Today we'll be assessing the situation in Greece after yesterday's visit by Alexis Tsipras to meet Angela Merkel.
China HSBC PMI 49.2 adds to jan/feb soft data. Suggests gdp below 7pct. Ditto Q2, and of course, rate and RRR cuts soon, infra sp later
Our European opening calls: $FTSE 7021 down 16 $DAX 11863 down 33 $CAC 5042 down 12 $IBEX 11446 down 7 $MIB 23049 down 8
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