Greek debt crisis: EU agrees €7bn loan as Germany backs new bailout talks - as it happened

Graeme Wearden, Kate Connolly in Berlin, and Nick

from on 2015-07-17 17:35 (#EK4K)

Bundestag has given its backing to new aid talks, but 60 members of Angela Merkel's conservative bloc opposed the plan

6.35pm BST

Following a vote in favour of starting talks about a third Greek bailout in the German parliament, the EU has agreed to a a7bn, three month bridging loan for the country.

This will allow Greece to make a a3.5bn payment due to the European Central Bank on Monday, as well as pay the a1.5bn arrears it owes to the International Monetary Fund.

6.33pm BST

There's been some confusion about whether Greek banks will or will not open on Monday, but a senior banker has now said they will. Helena Smith reports:

After three weeks of being closed and with capital controls, banks will reopen on Monday, a senior finance official in Athens has said, ending speculation that they would remain shut for a while longer.

Earlier in the day there were concerns that it would be technically too difficult to open branches without special preparation. But the official confirmed that lenders would re-open for specific operations barring foreign transfers.

5.19pm BST

With Greek bailout talks back on, former US Federal Reserve chairman Ben Bernanke says that Europe needs to hold up its end of the bargain:

Specifically, is the euro zone's leadership delivering the broad-based economic recovery that is needed to give stressed countries like Greece a reasonable chance to meet their growth, employment, and fiscal objectives? Over the longer term, these questions are evidently of far greater consequence for Europe, and for the world, than are questions about whether tiny Greece can meet its fiscal obligations.

Unfortunately, the answers to these questions are also obvious. Since the global financial crisis, economic outcomes in the euro zone have been deeply disappointing.

Nobody is suggesting that the well-known efficiency and quality of German production are anything other than good things, or that German firms should not strive to compete in export markets. What is a problem, however, is that Germany has effectively chosen to rely on foreign rather than domestic demand to ensure full employment at home, as shown in its extraordinarily large and persistent trade surplus, currently almost 7.5 percent of the country's GDP. Within a fixed-exchange-rate system like the euro currency area, such persistent imbalances are unhealthy, reducing demand and growth in trading partners and generating potentially destabilizing financial flows.

... Germany could help restore balance within the eurozone and raise the currency area's overall pace of growth by increasing spending at home, through measures like increasing investment in infrastructure, pushing for wage increases for German workers (to raise domestic consumption), and engaging in structural reforms to encourage more domestic demand. Such measures would entail little or no short-run sacrifice for Germans, and they would serve the country's longer-term interests by reducing the risks of eventual euro breakup.

I'll end with two concrete proposals. First, negotiations over Greece's evidently unsustainable debt burden should be based on explicit assumptions about European growth. If European growth turns out to be weaker than projected, which in turn would make it tougher for Greece to grow, then Greece should be allowed greater leeway after the fact in meeting its fiscal targets.

Second, it's time for the leaders of the euro zone to address the problem of large and sustained trade imbalances (either surpluses or deficits), which, in a fixed-exchange-rate system like the euro zone, impose significant costs and risks. For example, the Stability and Growth Pact, which imposes rules and penalties with the goal of limiting fiscal deficits, could be extended to reference trade imbalances as well. Simply recognizing officially that creditor as well as debtor countries have an obligation to adjust over time (through fiscal and structural measures, for example) would be an important step in the right direction.

4.59pm BST

Elsewhere in Athens of course, fires are raging. Here is a video showing emergency workers battling the blazes:

4.50pm BST

Ahead of the reshuffle being announced, the Greek prime minister had a visit from nobel prize-winning economist Joseph Stiglitz. The US economics professor is holding talks with Tsipras, as I write, says Helena.

His visit has elicited wry commentary in the Greek media that perhaps he might also be offered a job in the new cabinet. Stiglitz, like many US economists, has been scathing of Europe's handling of the crisis and its emphasis on fiscal targets being met.

4.42pm BST

Over in Athens our correspondent Helena Smith is hearing that the reshuffle is expected to be announced "any moment."

The cabinet shake up is expected to see at least three government ministers moved. The energy minister Panagiotis Lafazanis, the deputy social security minister Dimitris Stratoulis and the deputy defense minister Kostas Isychos are all expected to go (the latter has already resigned).

The labour minister Panos Skourletis, a close ally of prime minister Alexis Tsipras, is also expected to step down with media reports suggesting he will be replaced by his deputy the US-trained Rania Antonopoulou. The deputy finance minister Nadia Valavani, who resigned earlier this week after describing the new bailout agreement as Greece's tombstone, will also be replaced - along, rumour has it, with the government spokesman Gavriel Sakellarides.

Tsipras is keen to show he is in control and moving fast - so much so that the new cabinet will be sworn at around 7:30 PM according to the reports. Senior cadres this afternoon told me the aim was to inject new life into the government but none underplayed the task at hand.

4.25pm BST

We're on the right track but it will not be easy.

That is the message from Eurogroup president Jeroen Dijsselbloem after the way was cleared for negotiations for a third Greek bailout to begin. In a statement He said:

4.12pm BST

And here's the Eurogroup statement as promised:

The Eurogroup welcomes the successful completion of the relevant national procedures related to the decision to grant in principle a 3-year ESM stability support to Greece, and especially the recent swift legislative steps taken by the Greek parliament as a first step towards rebuilding trust.

Following a formal decision taken by the ESM Board of Governors, the institutions were entrusted with the task of swiftly negotiating a Memorandum of Understanding (MoU) detailing the policy conditionality attached to the financial assistance facility.

4.05pm BST

The Greek cabinet reshuffle could come in the next few hours, local media are now reporting.

3.25pm BST

There could be problems if the loan runs out before a new deal is reached, my colleague Jennifer Rankin points out:

If #Greece does need more bridge finance, will be harder to use #EFSM again. More pressure on eurozone to offer loans if ESM talks drag.

3.20pm BST

And another development:

At presser @VDombrovskis confirms #Greece bailout talks move back to Athens. Goodbye Brussels Group, hello troika.

3.11pm BST

Here's Finland's finance minister:

ESM Board of Government and #Eurogroup conf call over. Official decisions imminent. We turn a page and move on. #Eurocrisis

3.08pm BST

And a Eurogroup statement is expected shortly:

Call ESM has finished, also call of #Eurogroup. Outcome first call on ESM website, statement #Eurogroup will be published shortly #Greece

3.07pm BST

And here is a statement from the European Stability Mechanism indicating that negotiations can now officially begin:

The Board of Governors of the European Stability Mechanism (ESM) approved today a decision to grant, in principle, stability support to Greece in the form of a loan programme. This decision follows the completion of national procedures that involved parliamentary approval in some of the ESM Member States. The basis for the Board of Governors' approval was the assessment by the institutions and the proposal by ESM Managing Director Klaus Regling.

This in-principle decision paves the way for the institutions to negotiate a Memorandum of Understanding (MoU) detailing the agreed macroeconomic reforms, or policy conditionality, linked to the ESM financial assistance facility. Simultaneously, the ESM Managing Director will prepare a proposal for the loan contract with Greece, the Financial Assistance Facility Agreement (FFA).

3.05pm BST

And here's how German MPs voted:

How they voted: list of #German MPs on #Bundestag website #Greece https://t.co/yVplfadeb7

3.02pm BST

Manfred Weber, leader of the centre-right European People's Party, the biggest bloc in the European parliament, has welcomed the various parliamentary votes backing talks for a new Greek bailout.

But he warned it was only the start of a long and difficult process (which I think we probably already knew):

National parliaments are behaving responsibly. Approval votes are good news. Europe stands together. @EPPGroup #Agreekment

But this is only the beginning of a long & complicated negotiation process. The Greek government has destroyed a lot of trust. #Greece

3.02pm BST

But despite the loan agreement, and contrary to what had been suggested earlier, there are now reports that Greek banks will NOT now open on Monday.

2.57pm BST

More on the bridging loan:

EFSM loan to Greece, safeguards for non-euros/UK. At later date EC promises to amend EFSM regulation on same basis pic.twitter.com/1VKe8UXxv1

Call ESM Board of Governors today at 3pm, followed by Eurogroup teleconference #Greece

1.18pm BST

Meanwhile Greek energy minister Panagiotis Lafazanis, one of the Syriza rebels who voted against the bailout deal on Wednesday, is widely expected to leave the cabinet in the forthcoming reshuffle.

Earlier Reuters reported his replacement as energy minister could be labour minister Panos Skourletis.

Energy Min Lafazanis visits Athens area hit by fires. Local residents yell at him, asking "what the hell u doing here?" #Greece

1.04pm BST

We have the answer: fifty sixty members of Angela Merkel's CDU/CSU bloc have defied their chancellor and voted against beginning talks on a third bailout.

They voted alongside MPs from the left-wing Linke party -- who had earlier savaged the bailout plan for its lack of concrete debt relief.

1.01pm BST

Correction: of 598 votes placed, Ja: 439, Nein: 119, Abstentions: 40

12.58pm BST

The Bundestag has voted in favour of starting negotiations with Greece over a third bailout.

439 lawmakers voted in favour, and 119 opposed the move, with 40 abstentions.

#Bundestag vote on third Greek bailout: 439 yes, 119 no, 40 abstentions

12.52pm BST

Many people, including loyal reader Kizbot, point out that while Germany votes, Greece burns.

Large wildfires are now burning in Peloponnese, Athens and Evia, with reports that some residents on Mount Hymettus are fleeing their homes.

Athens fire. Panoramic. #Greece #GreeceOnFire. pic via @ThePressProject pic.twitter.com/sMZrvW06qz

Greek officials have requested assistance from France and Italy to combat fires, Skai reports #Greece

12.44pm BST

MPs crowd round the ballot box to place their votes in #Bundestag debate on #Greece pic.twitter.com/2jQQnFwMrT

12.39pm BST

Angela Merkel has voted, in the throng:

12.38pm BST

12.35pm BST

The debate is over, and the Bundestag has begun voting on whether to begin talks with Greece on a third bailout package.

MPs are forming an orderly queue to place their vote in the ballot box.

12.33pm BST

Ralph Brinkhaus, a CDU member, has argued that Grexit could still happen if Greece cannot reform.

Brinkhaus (CDU/CSU): We can't answer all Europe's problems w/more institutions & more integration. We must really debate abt future of EU.

12.28pm BST

12.14pm BST

The Bundestag is now hearing from one of CDU MPs who plans to reject talks with Greece about a third bailout:

At podium, Klaus Peter Willsch, one of the #CDU rebels "However much water you put into a bottomless barrel it will never fill up" #Greece

12.05pm BST

Greek banks will open on Monday, according to alternative finance minister Dimitris Mardas.

The a60 daily cash restriction will remain in place, reports Greek news agency ANA-MPA, but Mardas said banks will be able to offer a wider range of services, such as money transfer from one account to another.

11.57am BST

Newsflash from Vienna -- the Austrian parliament has voted in favour of opening talks with Greece on the new, three-year bailout.

11.56am BST

One of the more digging remarks of #Bundestag debate as @SWagenknecht refers to #Schiuble as the "cutback Taliban" https://t.co/QmWuxtgyni

11.46am BST

Many in the City are unconvinced that a third Greek bailout will succeed.

Ipek Ozkardeskaya of London Capital Group explains:

Although the very much expected Greece-EU deal is almost sealed, the market remains sceptical on Greece's future in the Eurozone.

The bailout package, as agreed, is too strict to fuel the growth engine in Greece. The a86bn aid package is going to be a financial relief for couple of more years. In the absence of significant aid to investment, we will be discussing the Grexit once that money would have melted.

11.45am BST

Not all German MPs are best pleased with their finance minister:

#Germany SPD's Schneider attacks FinMIn Schiuble's 'timeout' Grexit plan: "More than irritating". #Bundestag #Greece

11.42am BST

Klaus Ernst of #Linke loudly denounces #SPD in #Bundestag, spks of how it contributes to blackmail of #Greece & robbing it of its solidarity

11.34am BST

Half an hour to go until the German parliament votes. MPs are still offering opinions, but we've heard from the main players.

The rush of CDU/CSU MPs to defend Schiuble is a vivid proof that the German FinMin is on the defensive. #Germany #Greece

11.31am BST

Back in the Bundestag, the parliamentary group leader of Angela Merkel's CDU party, Volker Kauder, has backed the chancellor:

Kauder, MP CDU/CSU: We knew that entrance of Greece in a, it was also a political decision, because we knew that the reqremnts weren't best

CDU/CSU faction leader Kauder says today's vote is not primarily about #Greece, but about Europe. #bailout

11.18am BST

On top of everything else, Greece now has to deal with a large fire breaking out on the outskirts of the capital:

Fire breaks out on one of the mountains surrounding Athens, Athenians watching the Bundestag on TV

Fire in Athens. Literally. Ymittos Mt, Kareas. Close to residential areas. Spreading. Pic by @torosnegros pic.twitter.com/rTANiJBpXB

photo of hymmetus fire taken from syntagma office building by my FB friend lilian @triosdim pic.twitter.com/Qh8mTgPsHf

11.09am BST

*ZING*

SPD's Oppermann gets laugh out of #Merkel when says of Wagenknecht "If I listen to you for 6 mins, #Tsipras suddenly doesn't seem so bad"

11.08am BST

The debate continues, with Thomas Opperman, the chairman of the Social Democratic Party pledging that only two of his MPs will oppose the plan.

Opperman offers Schiuble some support, saying it was right to prepare alternative plans:

#Opperman to #Schiuble: The way you are vilified in the media and social media is awful and unacceptable. It was right to have a plan B.

11.05am BST

Mystery solved:

Schiuble's #Romania remark was dig at Gabriel Romania has Soc Dem gov. Gabriel had made dig at #Schiuble comparing him to Hungarys far-right

11.02am BST

Ouch:

Referring to #Schiuble's #Grexit plans, #Wagenknecht says: "it's as if you wanted to make a new home for yrself in the ruins of the #AfD"

10.48am BST

Sahra Wagenknecht of far-left #Linke (compared to Frida Kahlo & partner of Oskar Lafontaine) takes to the floor & is sizzling with anger

10.48am BST

Sahra Wagenknecht of Die Linke, the left-wing party, follows Schiuble.

She's arguing that that Greek deal is badly flawed, because it doesn't provide the debt relief that Greece desperately needs. We'll be back here soon enough once it fails, she adds, and Schiuble knows that too.

For Die Linke Sahra Wagenknecht: IMF estimates that Greek debt soon 200% of GDP. This package will be a drop in the ocean.

10.45am BST

Wolfgang Schiuble ends his speech by asking the Bundestag to vote in favour of negotiating a third deal for Greece.

It's a decision between our hearts, and our heads - but we must try to make this new package work, he concludes.

#Schauble pleads in what is quite a fiery speech for MPs to vote in favour of negotiating 3rd bailout saying "after we can see where we are"

That's the end of #Schiuble's speech Btw he's been in the #Bundestag since 1972 and survived an assassination attack in 1990. Wife economist

10.42am BST

Schiuble clearly believes Greece needs debt relief, showing his own doubts about the chances of this new bailout deal working:

#Schiuble: Haircut illegal in EZ, and without the haircut, this 3rd programme will be even harder for #Greece than the previous ones.

#Schiuble: Given that haircut is not a possibiltiy under EZ law - we had to find another way that is realisitic. #Greece

10.39am BST

Schiuble is going to leave a dent in that lectern if he keeps thumping it....

Schaeuble's tone is of a frothing coach yelling at his players in a half-time pep talk. He is about to say "now go out and win this thing"

10.30am BST

#Schiuble now up. Starts by talking about origins of the #Euro. Seems to be exercise in restoring his reputation

Schiuble: no one is as convinced that Greece needs help as me He's quite a mumbler not known for his sound bites. off on a tangent. Romania?

Schiuble: "This is a last attempt" - we need to to help #Greece find it's way back to the markets

10.28am BST

Speaking rather passionately at times, Schiuble is asking MPs to support the bailout plan.

We all know that Greece needs help.

We must help #Greece & keep #Europe together - says @Wolf_Schauble in #Bundestag @France24_en pic.twitter.com/EsecOVBIrw

10.21am BST

It's Wolfgang Schiuble's turn to speak....

10.16am BST

Giring-Eckardt doesn't share Angela Merkel's appreciation for Schiuble's tireless work.....

German Greens chairwoman Giring-Eckardt: "Mr. Schiuble, that you still insist on being right about a #Grexit, destroys trust in Europe!"

10.15am BST

Reminder, you can watch the debate here.

Katrin Giring-Eckardt of the Green party is now speaking, and criticising Merkel for taking such a hard line with Greece. She speaks of a Europe where the strong push the weak around.

Giring-Eckardt: "Wir hatten den Eindruck, es ging plitzlich um ein Europa, wo die Stirkeren den Schwicheren diktieren"

Up now is @GoeringEckardt of the #Greens. Says third bailout is "necessary, important and right". Praises Hollande and Renzi

Giring-Eckardt says she is greatly relieved that it was not the "Deutsche Weg", the German path, that won out, therefore avoiding a #Grexit

Giring-Eckardt: "The #IMF is right - Greece urgently needs a debt reduction". She refers to the post-war solidarity shown towards #Germany

Giring-Eckardt: #Greece needs warmth not cold-heartedness from us. Says every Green vote is for a common and solidly united Europe

10.14am BST

We shouldn't forget that Sigmar Gabriel was taking a much harder line on Greece earlier this month, warning that Greece had 'torn down the last bridge" towards a compromise. What a difference a deal makes.

Having shamefully been even more hawkish and harsher on #Greece than #Schauble it seems that @sigmargabriel is now striking a milder tone

10.06am BST

Dep Chancellor @sigmargabriel straying off Greece theme: "Every baker in Berlin pays more taxes than Google, Amazon etc"

10.04am BST

Sigmar Gabriel has reminded German MPs of the suffering in Greece:

#Gabriel: The Greeks are our friends. We cannot allow hungry children, begging pensioners, soup kitchens. 3rd prog is necessary. #Greece

10.01am BST

Here's a summary of the second half of Merkel's speech:

Merkel told the Bundestag that Greece's expressions of intention were not enough. It was necessary to see deeds.

"We're doing this for Greece, as much as for the German people."

9.56am BST

Sigmar Gabriel, Germany's vice-chancellor (and the most senior social democrat in the coalition) speaks next.

Gabriel says it is vital that Grexit is now off the table. But he also criticises the first two Greek bailouts, saying they haven't helped:

Gabriel: IMF analysis clearly says Europe and Greece needs investment and growth, and we (the SPD) agree #Germany #Greece

9.50am BST

Angela Merkel stressed that trust had broken down and the challenge of the past few days has been to try and reconstruct that trust.

"We had three possibilities," she told the Bundestag, at the start of today's debate on the Greek aid package.

"The alternative to this agreement would not be a 'time-out' from the euro ... but rather predictable chaos."

9.46am BST

9.44am BST

Gysi cites The Telegraph: 'Germany has achieved dominance in Europe without a single shot being fired' to groans and boos in #Bundestag.

Try quoting the Guardian next time, Gregor....

9.43am BST

Gregor Gysi, the head of the left-wing Linke party is now speaking, and warning that the German government has made terrible mistakes.

Amid heckling, he criticises Merkel for allowing Schiuble to push his idea of a temporary Grexit.

#Gysi: Merkel you are seen as a strong woman - but Schaueble has been chancellor recently, pushing 'scandalous' ideas of #Grexit.

#Gysi: Germany needs the Euro more than #Greece. You know this Schaueble but daren't say it.

9.36am BST

9.34am BST

MPs listened in respectful silence during Merkel's speech - such a contrast with Wednesday night's drama in Athens (or your average Prime Minister's Questions in London).

And they give her a rousing round of applause as she exits the lecturn.

9.33am BST

Angela Merkel ends her speech by assuring MPs that Europe will come out of this crisis stronger.

#Merkel: We have not only decided about #Greece. This is for a strong Europe and a strong EZ.

9.32am BST

Merkel insists that the Greek deal is the only option, the alternative is chaos.

Her message to doubtful MPs is that we must give Greece a chance, and reminds them that Germany's success is tied up with Europe's.

#Merkel: Germany & France has had very different opinions. But we can find ways to agree and show the way to others in Europe. #Greece

9.29am BST

Hearty applause for #Schauble in #Bundestag

9.27am BST

Applause ripples across the debating chamber as Merkel thanks Schiuble for working "tirelessly".

9.26am BST

Merkel is now criticising Alexis Tsipras's government for sending the Greek economy into reverse this year -- but she's encouraged by Wednesday night's vote:

#Greece: Greece had to pass laws to talk about 3rd programme. Greek parl has by impressive majority passed these reforms.

9.24am BST

On debt relief, Merkel says that haircuts are not allowed within the eurozone.

9.22am BST

Merkel admits that her finance minister's plan for a "temporary time-out" from the eurozone was a non-starter:

#Merkel: Allowing #Greece to leave EZ would have been a end to European solidarity. We would not have allowed it.

#Merkel: The temporary #Grexit plan was not favored by #Greece nor by other EZ members. We could not have allowed this.

9.20am BST

Merkel is covering some familiar themes, saying that trust in Greece has been lost recently.

Solidarity and reforms must go together

9.19am BST

#Merkel: #Tsipras won w/2 promises 1) to end austerity 2) that #Greece would remain in EZ. They cannot exist together.

9.18am BST

Angela Merkel opens the debate, telling MPs that Europe has seen unprecedented drama in Greece in recent days.

After MPs wish #Merkel a happy birthday she takes to the podium. Talks of dramatic days "a degree of drama for Greece that cannot be topped"

#Merkel: Can you imagine how it would be if German pensioners were lining up to get their monthly pension? #Greece

9.15am BST

The debate is getting underway now -- live feed here.

#Greece debate starts in German Bundestag with President Lammert wishing Angela #Merkel a happy birthday.

9.11am BST

Norbert Lammert's voice breaks as he says that with Philipp Missfelder's death, "the Bundestag has lost an engaged and respected parliamentarian".

9.10am BST

German MPs are now in the chamber.

9.06am BST

Sahra Wagenknecht of the left-wing Linke party has just told German television that whilst her party wouldn't deny Greece needs widespread reform, the German government's approach is a complete fudge.

"This is not a Hilfspaket - a package to help Greece - it's a poisonous cocktail".

8.56am BST

Donald Tusk, the European Council president, has warned that the Greek crisis is helping to fuel a "pre-revolutionary atmosphere" in Europe.

"For me, the atmosphere is a little similar to the time after 1968 in Europe."

"I can feel, maybe not a revolutionary mood, but something like widespread impatience. When impatience becomes not an individual but a social experience of feeling, this is the introduction for revolutions."

Tusk's warning. Trust a good Pole to know what it means to be ravaged by extreme-right & extreme-left all at once http://t.co/MOgE138Myo

"In fact, it looked like an anti-German demonstration." @DonaldTusk on @atsipras in #EU parliament. Intvw transcript: http://t.co/eEPeIeGeND

8.40am BST

Germany isn't the only eurozone country asking its MPs to vote on the Greek bailout plan.

Austria is also due to debate it today, and likely to approve the deal.

8.32am BST

The 'temporary Grexit' proposal presented by Wolfgang Schiuble at last weekend's Brussels summit is likely to dominate this morning's debate.

Kate Connolly reports:

There are ever louder rumblings here this morning of a growing split in the coalition government focused on a fallout between SPD chief Sigmar Gabriel and finance minister Wolfgang Schiuble of the CDU as to who knew what and when about Schiuble's Grexit paper.

The issue is likely to dominate today's debate in the Bundestag.

Bundestag debate on #Greece to start soon. Forget caricatures & watch how interesting+diversified German politics is: http://t.co/uw8xUpJ8g4

8.13am BST

Visitors to Greece are already feeling the impact of the austerity measures which creditors demanded, in return for opening talks on a third bailout:

Looks like action is underway. This letter has just been slipped under hotel room door in #Greece @BBCBusiness pic.twitter.com/1drAU6wQ8h

8.11am BST

Around 50 German MPs from Angela Merkel's conservative alliance are expected to revolt against the government and vote no to a third Greek bailout in the Bundestag today.

My colleague Kate Connolly in Berlin reports:

In what is expected to be a heated and emotional debate, the 6th time in five years that the German parliament has taken a decision directly relating to the Greek crisis, the rebels say they will vote 'nein' out of anger at the German chancellor's decision to offer Greece another bailout, having signalled at one point that she was willing to push for Greece to leave the Eurozone.

In a taster of what might come on Friday, Reinhard Bi1/4tikofer, a Green MEP, accused Schiuble of giving Germany a "heartless, imperious, and hideous" face.

8.02am BST

Today's vote isn't in doubt because of the size of Germany's grand coalition between Merkel's CDU/CSU and the SPD.

Germany to give verdict on Greece. Vote in Bundestag will pass as CDU/SPD coal w/ big majority http://t.co/g1ZuWVIJvj pic.twitter.com/hcyFhTvIIA

8.00am BST

One of Angela Merkel's close allies has already pledged to vote in favour of negotiating a third Greek bailout:

Gunther Krichbaum (CDU mucky muck) tells ARD he will vote YES in the Bundestag, for anyone whipping the #Greece vote on trading floors.

7.59am BST

Greece's bailout package simply isn't viable unless the country is given significant debt relief to make its borrowings sustainable.

"That means holding a budgetary position that is sound and gives the country solidity; and the second leg is that of the lenders, which entails supplying financing and restructuring the debt to ease its burden."

Lagarde IMF says eurozone creditors Greece bailout is not 'viable' without debt relief. Draghi ECB agrees. Why this EU charade? #Grexit

7.50am BST

Good morning.

Greece's bitterly fought and generally flawed bailout plan faces another hurdle this morning -- approval from Germany.

Die Sondersitzung im #Bundestag zu den #GriechenlandHilfen wird um 10 Uhr live auf http://t.co/Owk1pEJsVJ i1/4bertragen. pic.twitter.com/NjpVZQfnUU

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