Greek government wins confidence vote - as it happened
Rolling coverage of the Greek debt crisis, as markets welcome signs that Athens will compromise at Wednesday night's eurogroup meeting, after tonight's confidence vote
- Latest: 162 MPs support Alexis Tsipras
- Tsipras tells MPs: we must reshape our debt programme
- Tsipras: We cannot return to subservience
- Former PM Samaras criticises his successor
- Evening summary: bailout hopes rise
11.29pm GMT
Oh, and here's a photo of Alexis Tsipras voting tonight (note the now-traditional lack of a tie)
11.27pm GMT
Greek government ministers look pleased to have got this confidence vote out of the way.
11.23pm GMT
OK just announced officially Confidence vote result 162-137 #Greece
11.22pm GMT
So, Greece's government has proved that it has the support of a majority in the Athens parliament, and also declared that it will deliver on its electoral promises and renegotiate its debt deal.
That sets up a clash with Europe, starting in Brussels on Wednesday night. It's going to be a big day, as Bloomberg's Lorcan Roche Kelly explains here:
11.19pm GMT
It's a wrap.
162 Yes votes. No surprises.
11.18pm GMT
Sounds like every member of the Greek government backed it tonight -- just as well, really, given they were only sworn in two weeks ago.
#Greece govt wins confidence vote, 162 "yes"
11.16pm GMT
Yup, it's official. Alexis Tsipras has the votes to win tonight's confidence vote.
That is formal confirmation that his government has enough support in the chamber to press on with its legislative programme.
11.14pm GMT
The result is coming in too...
Greek Government Wins Vote Of Confidence On Policy
11.07pm GMT
Helena's verdict is in:
Verdict #AlexisTsipras gave v hard-hitting speech tonight, esp hostile of Merkel & Schauble ahead of talks trm. Battle lines r drawn!
11.01pm GMT
Next, the vote of confidence. This shouldn't be a problem for the government, as it holds 162 of the 300 seats.
Interested to see if the Gov't will receive more than the 162 majority votes.
10.53pm GMT
I want to assure the Greek ppl that our policies will be implemented in full & I'm optimistic that we'll find a compromise w/EU partners
That could be tricky to pull off....
not sure that "in full" and "compromise" work well in the same sentence https://t.co/a9CGNJIO17
10.47pm GMT
The Greek PM is also pledging to meet all his pre-election promises; not leaving much wriggle-room.
Tsipras: I promise to the Greek people that we will keep all our pre-election pledges." Closing off options -why no noble silence for a bit?
10.40pm GMT
Tsipras is now urging Greek people to support him, saying Athens can't be blackmailed by Europe while they are by his side.
#Tsipras seems to me to be preparing Greek people to go to the brink and beyond
10.35pm GMT
As we flagged up earlier today, Greece's government insists it is receiving support from America's government.
RT @tsipras_eu: What is the alternative proposal? President #Obama asked Chancellor #Merkel just that--and didn't receive an answer #Greece
10.33pm GMT
10.25pm GMT
Tsipras says that Greece will seek a deal, to allow it to fulfill its debt obligations and allow it to repair its economy and return to growth.
An agreement that is in the mutual interest of #Greece and its lenders, that will end punitive conditions & destruction of the Greek economy
We do not wish to burden European taxpayers in perpetuity w/new loans to #Greece. We're seeking logical solutions
10.21pm GMT
#Greece Tsipras: We ask for a short term agreement. This won't be an MoU coz it won't come with austerity. This is our red line
10.17pm GMT
Onto specifics, and Tsipras confirms that his government will seek a short-term arrangement, to give them time and space to agree a longer deal.
10.14pm GMT
No obvious self-doubt in Tsipras's speech:
In just a few days, #Greece has gained its voice-with status, international prestige, dignity. No longer only an EU issue but a global one
10.13pm GMT
Hard to argue with this one:
#Greece may be a small country, but we strive to support a united #Europe, with democracy & solidarity.
10.12pm GMT
Following the @atsipras speech at @tsipras_eu. There seems to be a lot of rhetoric
Hard to argue...
We cannot risk our common European future #Greece
10.08pm GMT
Tsipras warns that the Europe of democracy and solidarity, values and people, could give way to a Europe of "terror, division & destabilization", if the wrong decisions are taken.
Tsipras giving lessons to Germany now...
10.07pm GMT
RT @tsipras_eu: #Greece may be a small country, but we strive to support a united #Europe, with democracy & solidarity.
10.06pm GMT
Tsipras is hammering home that Europe has reached a historic point (one of many in the crisis). The decisions taken in the coming days will determine whether Europe can remain united, he says.
Tsipras: "There is no road of return ... Greece cannot return to bailouts and subservience" #Greece pic.twitter.com/wAUo76us2L
10.04pm GMT
The election on 25 January marked the end of a political regime, Tsipras says.
IIIIII^1 II II IIIIIII^2II...I III^1 III 25I IIIIII III IIIII1/4I I1/4I^1I IIII(R) II...I^2IIIIII^1II(R) IIIIIII^3I(R). IIIII1/4I II IIIII IIII IIII^1II^1III IIIIIfIIIII.
10.02pm GMT
Tsipras: It won't simply be Yanis Varoufakis at the eurogroup meeting on Wednesday night, but 10 million Greeks, including poor people and neo-immigrants.
10.00pm GMT
Alexis Tsipras tells the Greek parliament that it is essential for all of Europe, not just Greece, that his government succeeds in reshaping its bailout programme.
He also declares that his government has made a cracking start:
This is the 1st time in #Greece's modern history that a govt has won the confidence & acceptance of society even before a vote of confidence
9.55pm GMT
Time for the new PM.....
Tsipras time.
9.42pm GMT
Samaras ends his speech saying: "There's something worse than a kolotumba (u-turn) - and that's taking the country to the rocks [of disaster]"
9.34pm GMT
Helena Smith watched former prime minister Antonis Samaras take the stand in countdown to the tonight's vote in the Greek parliament.
He's in fine form, she Helena Smith, decimating the new government's economic policies.
"You've been told no regarding to renegotiating the debt, no to the international conference [to discuss the debt] no to everything," he told the chamber as the man who ousted him Alexis Tsipras looked up.
"And don't dare endanger our foreign policy that with great effort and toil we worked to achieve," he says. "Of course we are not going to give you a vote of confidence in policies that bear witness to your wrong views " you will lead the country to the rocks unless you change course, which you will have to do, very soon " Make sure you don't give ammunition to enemies of Greece."
9.29pm GMT
Not sure that Samaras is winning many votes....
Samaras' interminable/inane parliament speech driving tweeps gaga.
9.28pm GMT
9.26pm GMT
Greece's previous prime minister, Antonis Samaras, is now addressing the chamber, warning that the crisis could explode:
Samaras: You risk uniting Europe's North & South against #Greece.
Samaras: Grexit would be unwelcome for the Eurozone but for #Greece would be catastrophic.
Samaras: You accuse us for asking only for 2 months of bailout extension. Why don't u ask for anothr 4 months? Are u afraid of yr left wing?
9.22pm GMT
Hello again. The Greek confidence debate is heading towards a vote.
While we were offline... the economy minister promise that the ERT station would reopen soon, having been forcibly shut in 2013.
Nik. Pappas announces that the govt will bring legislation to the parliament within the next month, in order to reopen #ERT #vouli #Greece
RT @nstamouli: New legislation that will be submitted in parliament 4 ERT will allow all former employees 2B rehired @nikospappas16 #Greece
Economy Minister Giorgos #Stathakis says gov't to submit bill protecting primary residences against foreclosures #Greece
7.00pm GMT
PS: The confidence vote result is due after midnight Athens time (after 10pm GMT), so the blog will burst back into life at some point.
The debate is continuing in Athens, with the head of the health ministry laying out plans to strengthen the service.
health minister panayotis kouroublis says health sector produces either insecurity or security. we don't see health spending as waste.
kouroublis: a healthy people is a productive people, a people that progresses.
kouroublis: unfreezes 1,000 hirings (doctors)
kouroublis: 2nd goal is to refound the national health system (from the 1980s)
6.35pm GMT
With several hours to go until the Greek confidence vote (which Tsipras will surely win), I'm going to suspend proceedings.
Might pop back later tonight if there are major developments.
"If you're not willing to even consider a clash, you're not negotiating."
"We're not seeking a clash. We will do everything to avoid it. But you're not negotiating if you've ruled it out."
WHOA. Schaeuble says it's "over" for Greece unless they accept current deal http://t.co/VHEtF7MoOt pic.twitter.com/lVCTNGtk00
Schiuble (and Merkel) obviously not ready to enter 'creative thinking' territory just yet. Tomorrow's Eurogroup just a warm-up to Monday's
@graemewearden Pity that the Commission has no final say as it does not put money on the table
Even 41% of New Democracy voters support #Greece gov stance to re-negotiate terms, 75% in total backing, new poll pic.twitter.com/G5vtxs7vsE
6.26pm GMT
Here's Greek finance minister Yanis Varoufakis telling the Athens parliament that Greece's post-bailout era starts tonight.
"If you're not willing to even consider a clash, you're not negotiating."
"We're not seeking a clash. We will do everything to avoid it. But you're not negotiating if you've ruled it out."
6.16pm GMT
Economists at Daiwa Capital Markets have published a preview note of Wednesday's crunch eurogroup meeting, titled "High noon in Brussels".
6.11pm GMT
Not sure if this is a good omen, or not, but it's snowing in Athens tonight.
Snow in Syntagma! RT @MakisSinodinos: II^1IIII^1III IfII II...IIII^3I1/4I pic.twitter.com/bCjgpZXiqA
Snow in Athens. Snow. In. Athens. http://t.co/w9RTg9WfuV pic.twitter.com/xznrBcC04L
6.09pm GMT
The head of Greece's KKE communist party, Dimitris Koutsoubas, did not take up the invitation to support the new government.
Instead, Koutsoubas bluntly argued that the Greece government's six-month 'bridging programme' is effectively a bailout extension (something Alexis Tsipras had ruled out on Sunday night).
koutsoubas: we will not accept the tricks being played to confuse the people.
koutsoubas summed up kke position in a single statement: the clash between the obama-ists and the merkel-ists is irrelevant to the people.
5.48pm GMT
Varoufakis concludes by repeating that he rejects around 30% of the existing austerity programme, and urges opposition MPs to support him in the eurogroup negotiations:
varoufakis suggests opposition support by telling european counterparts that what govt wants is necessary for effort to bolster eur idea
5.40pm GMT
varoufakis: this is the first govt going to eurogroup standing straight and now walking in bowed.
But will Greece walk out the same way?...
5.38pm GMT
Varoufakis may be an expert in game theory, but he insists he's not playing games in these negotiations:
varoufakis: game strategy is for games. you don't play with europe's future, you don't play with greece's.
5.36pm GMT
Yanis Varoufakis rules out accepting any bailout terms that raise Greece's debt levels:
Sensible "@FGoria: * Greek finance minister says we will not accept any part of the bailout that will increase our debt - RTRS"
5.31pm GMT
Now finance minister Yanis Varoufakis is addressing the Athens parliament.
He declares that Greece is on the brink of the post-bailout era (we'll see what Germany thinks about that) and also savages the mistakes that caused Greece's depression.
Varoufakis: With tonight's vote of confidence #Greece is entering the 'post-bailout' era.
varoufakis: we passed from classic period of pyramidal growth to a unique state of pyramidal austerity.
5.22pm GMT
Venizelos is also querying exactly what Yanis Varoufakis means when he says he only rejects 30% of the bailout programme:
venizelos wonders when varoufakis says he accepts 70% of bailout. of which, what has been done or what remains?
5.19pm GMT
Back in the Athens parliament, the former deputy prime minister is chiding the new government for not communicating its plans better.
Pasok leader Evangelos Venizelos (who experienced a few debt crisis meetings in his time) said MPs are being asked to support Alexis Tsipras without knowing what will be offered to the eurogroup.
venizelos says there are different levels of discourse in relation to events. there is the confidence vote here today but tomorrow >>
<<proposal at eurogroup, but greek position not known by parliament.
venizelos: we support you honestly in the international negotiation. we say this clearly in all our contacts with european [parties].
venizelos: we're not as enthused as the govt because we know the diplomatic terminology and the limits from ea. country's situation
4.59pm GMT
Jasper Lawler, analyst at CMC Markets, sums up the too-ing and fro-ing in recent days:
Greek politicians are walking a tightrope of shouting condemnation of the previous bailout package loud enough that their voters can hear but also whispering compromises to EU bureaucrats to try and get a deal done.
In the meantime, markets are getting pushed around on every report that indicates a move towards or away from compromise by either side.
4.47pm GMT
Greece's finance ministry has come out with a statement tonight, denying a report that the government intends to go back on its decision to drop the privatisation of Pireaus port.
The Wall Street Journal had earlier cited a ministry official as saying the sale of Pireaus Port authority would go ahead.
4.33pm GMT
There will also be demonstrations in support of Greece in other cities on Wednesday night, including in Germany, Italy and Portugal.
And next weekend, there will be a demo in Edinburgh on Saturday, and in London, Amsterdam and Brussels (among others) on Sunday.
Give Greece a Chance! WE ARE ONE! Thank you Scotland! pic.twitter.com/Ym2I2scbj6
4.21pm GMT
Heads-up. There will be pro-government demonstrations across Greece tomorrow night, to show the eurogroup that Alexis Tsipras's government has their support.
Call for pro-gov rally Tom @6.pm. #Syntagma in #Athens and Greek cities to coincide with Eurogroup meeting #Greece via @ekathimerini #mazi
4.13pm GMT
Teneo Intelligence analyst Wolf Piccoli says Schiuble has punctured excessive expectations.
With his usual brutal touch Schaeuble kills the nonsense newsflow about a deal tomorrow. Time to move on #Greece
4.10pm GMT
Officials close to Alexis Tsipras are saying that the Greek prime minister has had positive telephone contact with EU commission president Jean-Claude Juncker.
That may be further confirmation that a compromise between Greece and its creditors is in the offing (although Wolfgang Schauble says differently)
Officials were cited as saying that the call was further proof that Athens' proposed bridging programme was on the table and being discussed.
"Whether it is called that or described as an extension so that it is endorsed by other European parliaments, what is important is that the Greek positions are being taken into account," they said.
Differing comments regarding Greece, Schaeuble unsurprisingly dismissive, while Junker/Tspiras phone call relatively upbeat #EUrelations
4.04pm GMT
The US Treasury secretary, Jack Lew, has fired a verbal warning shot at Europe tonight, saying fiscal policy should be looser. That's a clear nudge at Germany.
Lew also cautioned against idle talk of Greece leaving the eurozone.
4.01pm GMT
Here we go.... Germany's finance minister has declared that the eurogroup won't agree a new deal for Greece on Wednesday night.
Sounding as uncompromising as ever, Wolfgang Schiuble declared that Greece is solely responsible for its problems, and insisted that Athens needs to deliver a binding, credible programme to its creditors.
German FinMin Schiuble: Eurogroup won't agree new Greek program on weds. Already have a plan for #Greece.
#Schaeuble "we want to hear something binding from #Greece on Wednesday...If they don't want a new programme, its all over."
He has done it before and was vetoted, He will be overruled again! Angry Old Man @minefornothing #Schaeuble basically threatening Grexit
3.55pm GMT
3.48pm GMT
Hopes of a breakthrough in Brussels tomorrow night have driven the Athens stock market up by 8% tonight, bouncing back from yesterday's selloff.
3.36pm GMT
Back in the British Chambers of Commerce annual conference, deputy prime minister Nick Clegg has wheeled out Greece to defend the government's record.
Clegg tells #BCCConf "most important thing a govt can provide for biz is stability and just a few short yrs ago that was far fr guaranteed"
Clegg tell s#BCCConf UK could have been Greece 5 years ago, was teetering on the edge, but "we took the decision to form a new kind of govt"
3.32pm GMT
It's early days of course, but Alexis Tsipras's government does appear to enjoy strong public support for its bailout stance. Even among some supporters of the previous government, according to a new poll tonight.
Even 41% of New Democracy voters support #Greece gov stance to re-negotiate terms, 75% in total backing, new poll pic.twitter.com/G5vtxs7vsE
3.24pm GMT
Now this is interesting... Officials in Brussels are apparently 'infuriated' by some of the claims being put around by Greece ahead of tomorrow night's eurogroup meeting.
The carefully orchestrated dance between the new Greek government and its European creditors appeared to crack Tuesday, with top Brussels officials infuriated by what they see as wildly misleading claims coming from Athens.
Apparent claims from Athens officials to other governments suggesting that the U.S. Treasury supports a plan by the Syriza-led government to alleviate Greece's debt, and that the European Commission president Jean-Claude Juncker either backed the plan or had an alternative himself, have enraged senior economy officials in Brussels.
EU Sources: EU-Greek Relations Soured by Leaks; Sides Further Apart https://t.co/FQH6TjCQKM $EURUSD (h/t @fxmacro)
2.34pm GMT
The US stock market has opened higher, on optimism that Greece and its creditors are moving towards a deal.
The Dow Jones index is up by 80 points, or around 0.5%, in early trading.
Stocks open higher on renewed Greece hopes: http://t.co/dkxmhACkQ5 pic.twitter.com/bw5u78VE2H
2.22pm GMT
We shouldn't forget that the European Commission had originally proposed a six-month bailout extension late last year.
Instead, former PM Antonis Samaras took a two-month window. That gamble failed after MPs rejected his candidate for the presidency, triggering the election won by Syriza.
Commission has always been willing to consider 6 month extension for #Greece, but will require more reforms or at least not undoing any
You realise this has been Commission's position since Samaras was PM, right? MT @YanniKouts #EU Commission To Propose 6mo #Greece Extension
2.03pm GMT
The German chancellor Angela Merkel's lightning visit to Washington yesterday is being seen as playing a big role in getting Berlin to "see sense," analysts and officials are telling our correspondent Helena Smith in Athens.
US president Barack Obama said he was looking forward to hearing how Merkel foresaw kickstarting growth in Greece, after the two leaders held talks on Monday.
"The situation in the Ukraine and with ISIS is very very serious ". I don't think any of our partners in Europe wants to see catastrophe in Greece."
1.55pm GMT
Hopes are rising that Greece and its creditors will hammer out a compromise deal to extend its bailout programme, warding off the immediate threat of a default.
EUROPEAN COMMISSION SAYS THERE IS NO FORMAL PROPOSAL FOR GREECE BUT TALKS ARE INTENSIVE - RTRS
#Greece Athens stock exchange +6.37%, banks 14.46%
Greek 3yr yields drop below 20% as #Greece offers debt-talks compromise. http://t.co/Q4EI0YM5ON pic.twitter.com/F8esjoZ6qE
Greek compromise will revolve around semantics: when is a program not a program; when is a debt reduction not a debt reduction etc.
Because are committed to finding a solution we will do what we can to achieve a mutually beneficial solution.
We will not be dogmatic " we are prepared to discuss everything except two things: perpetuating and producing this never-ending debt deflationary spiral and disavowing our own critique of this programme.
"Even on the German side you can see the possible contours of a deal.
"For me, what's very important is the Greek Finance Ministry saying they are willing to embark on a new program of reforms. You could see a liquidity package on the basis there is enough space and commitment to reform. That would give them a few months to reach a bigger and longer deal."
We're optimistic a resolution of some form will be forthcoming and possibly by the end of this month before the current bailout expires, which could see a marked retracement of the selloff we've seen since the elections."
It may well be that eurozone leaders view Mr Tsipras's speech on Sunday as being primarily for domestic purposes and that behind closed doors the Greek government will be prepared to compromise.
However it is very unlikely that Ms Merkel will be prepared to allow the Greek government to set the economic policy for the Eurozone as a whole: the probability of her changing course 180 degrees is remote.
1.31pm GMT
Janis Emmanouilidis, director of studies at the European Policy Centre in Brussels, is optimistic.
#Grexit will not happen - enlightened self-interest will drive all sides to reach a compromise in the interest of #Greece & its partners
1.27pm GMT
Greek officials backing up the growing talk that if it does come, a breakthrough will be found at next Monday's eurogroup meeting.
Because are committed to finding a solution we will do what we can to achieve a mutually beneficial solution.
We will not be dogmatic " we are prepared to discuss everything except two things: perpetuating and producing this never-ending debt deflationary spiral and disavowing our own critique of this program."
1.03pm GMT
Heads-up: the Greek PM might be chatting to the head of the European commission shortly. Another sign of a deal coming?
At 15:30 local time RT @GuyJohnsonTV: Greek media reporting a Tsipras / Juncker call this afternoon #Greece
12.40pm GMT
The Greek stock market is rallying on the back of MNI's report that the EC will offer Greece a six-month extension.
The main index is up almost 3.5%. Bond yields continue to recover too.
Media reports on 6months extension for Greece. Greek stock exchange up 3%, 3year bond yield at 19,930%
12.32pm GMT
Things appear to be moving fast for Greece.
There are reports coming out of Brussels that the European commission will propose a six-month extension of the existing Greek bailout programme, at tomorrow night's eurogroup meeting.
EU Commission said to propose compromise plan for Greece. 6mo extension
GREXIT will not happen and who predicts it is wrong, again. Extension deal is in sight for Greece, and ECB support too.
11.56am GMT
A breakthrough between Greece and the rest of the eurozone is more likely to come at next Monday's eurogroup meeting, rather than tomorrow night's emergency gathering.
EU does not expect too much regarding finalising a deal with #Greece this week (@RANsquawk) - likely to go down to wire at 16 Feb #Eurogroup
11.36am GMT
Gary Jenkins, City analyst at LNG Capital, reckons Greece's creditors could support some parts of its compromise plan, but aren't likely to agree to a debt swap.
Here's his view of the key points - as laid out by the Kathimerini newspaper. It's quite long, but worth reading ahead of tomorrow's Eurogroup meeting.
Obviously the devil would be in the detail and it is impossible to comment without that. However, it is possible that some new reforms could be agreed upon and some old ones amended, so it is at least a negotiating point.
To some degree this is linked to (3) below, but considering the economic hardship endured by Greece it is difficult to believe that there would be no movement on this point. It may depend upon exactly what the money would be utilised for of course, but a reduction of this kind is unlikely to be the straw that breaks the eurozone's back.
This is likely to be some kind of swap where the debt (or a portion of it) becomes linked to economic growth. Here we have a potential sticking point: Whilst I think that the Greek debt burden is too high, the fact is that the eurozone may regard it as 'sustainable' because of the duration of the debt and the interest rate. Thus they may think that it is 'sustainable' even if they do not think it is 'repayable'.
Therefore, they may not wish to consider any change to the debt load or any material changes to the terms at this stage. They may well agree to a further extension and / or a lowering of the interest rate (either now or at a later date if Greece sticks to the new deal), but they are unlikely to consider a write-down at this stage. The idea of linking the debt to GDP may be favoured by many economists, but the EZ may believe that the kind of monitoring that would be required would be beyond their relationship with the new government at this stage.
This is linked to the other points and again the devil is in the detail. If the Greek government is allowed to run a lower primary surplus and use that money for 'humanitarian' purposes, it is difficult to see why the EZ would turn them aside.
I'm not sure about the 'profits' as to whether they are realised or mark to market. The T-bills may be an acceptable compromise but I would imagine that the ELA would continue to be very tightly monitored.
The EZ may not want the Greek government to draw down additional funds unless they publicly state that they remain in a programme. This is probably more about political face-saving for both parties and it would be surprising if some kind of wording could not be drawn up that was acceptable to both parties. However it could all fall down on the point of being in a programme or not.
11.34am GMT
Greek bond yields are still falling today, on hopes of a compromise deal being agreed.
But as this chart shows, they're still much higher than before the current crisis began.
#Greece - New Deal? Athens prepares a compromise before #Eurogroup. Greek 3yr yields drop. http://t.co/xTZVwlJSKA pic.twitter.com/9ss0ZXTng6
11.17am GMT
Newsflash from Brussels - the European commission isn't confident of a big breakthrough this week:
EU says 'expectations are low' for final Greek pact this week.
10.58am GMT
Ed Balls, Labour's shadow chancellor, has told the British Chambers of Commerce annual conference in London that eurozone leaders have serious issues to tackle (but he didn't speak specifically about Greece).
Ed Balls says "eurozone is in a huge chronic state at the moment" #bccconf
10.51am GMT
A Greek minister has declared that the new government will not be blackmailed by Germany into abandoning its anti-austerity programme.
lafazanis says we will not be blackmailed by merkel and schauble and forced into retreat. "our program is not a flag of convenience".
lafazanis: if some try to send ultimatums they should know they will have chosen wrong country, wrong people, wrong govt.
industrial production being crushed between financing, multinationals and high energy costs, says lafazanis
bottom line: no energy privatizations, new strategy with diversified partners and agreements.
Day before Eurogroup, Greek gov't announces it will cancel privatisation of electric power company PPC and gas supplier DEPA. #Greece
10.27am GMT
Peter Spiegel of the Financial Times has written a (typically) excellent Q&A on the Greek crisis.
In it, he explains that European officials are worried that Greece could run out of money in March, rather than cling on until the summer.
With no way to raise cash on the capital markets, and no bailout financing in place, Athens could literally go bust. A developed country defaulting on an IMF payment would be unprecedented.
This would seem an obvious and simple solution, but no such thing exists in the eurozone arsenal. The European Stability Mechanism, the eurozone's new a500bn bailout fund, can fund full-scale bailouts, bank recapitalisation programmes and even purchase sovereign bonds on the open market. But it has no tool to offer a short-term loan.
Besides, given demands from Berlin and elsewhere for Athens to stick to its bailout commitments, it is unlikely a bridge loan - even if it existed - would come without tough conditions akin to the current bailout.
Very useful (and free :-)) FT Q&A clearly explains the next steps & options re #Greece bailout - by @SpiegelPeter http://t.co/A732mpdupZ
10.18am GMT
More commentators are waking up to the fact that Greece is likely to compromise at tomorrow night's eurogroup [as readers of this blog learned yesterday afternoon].
But, as the Telegraph's Ambrose Evans-Pritchard points out, we don't know if Greece's lenders will play ball.
Greek deal emerging? 30% Troika reforms scrubbed. Primary surplus 2015 halved to 1.5%. Syriza bites into new loan. http://t.co/aUlGwqiBbv
Varoufakis letter to Juncker is big shift, but getting creditors to agree is not easy. Still wants debt swap. May avert immediate crunch
9.52am GMT
Greece's defence minister has also waded into the bailout crisis, suggesting that Athens could tap "another source" for funding.
"What we want is a deal."
"But if there is no deal and if we see that Germany remains unbending and wants to blow Europe apart, then we have the obligation to go to Plan B. Plan B is to get funding from another source."
But remember: def min not Syriza MT @ekathimerini: Greece could get funding 'from another source,' says defense min http://t.co/3kWNglzPEP
9.31am GMT
Back at the G20 meeting in Istanbul, Canada's finance minister has argued that Greece isn't the same threat to world stability as in 2012.
Reuters has the details:
Regulatory and financial reforms have helped diminish the risk Greece may pose to the euro zone, Canada's finance minister said on Tuesday, amidst growing concern about Athens' determination to ease austerity measures.
Speaking to reporters on the sidelines of the G20 meeting of finance ministers and central bankers, Joe Oliver also said the mood at the talks was 'determined', but not optimistic.
9.28am GMT
One of the new Greek government's loudest media critics isn't too impressed by the compromise plan being drawn up in Athens:
How do you measure 30% of program which Varoufakis wants to scrap? By action points? Impact? Legislative lines? Lots of scope for fudge.
Possible Greek compromise? Athens asks for new "contract" that is exactly same as old "bailout" minus 30% of reforms measured by headlines.
9.09am GMT
#Greece Athens Stock Exchange starts +2.59% after signs of compromise with eurogroup #ASE
9.00am GMT
So, what is this compromise plan that is calming the Greek crisis this morning?
As we wrote in yesterday's liveblog, it revolves around Wednesday night's Eurogroup meeting of eurozone finance chiefs.
Greece compromise plan include possibility of tapping part of bailout loan of a7bn, that it said would reject: source http://t.co/xMIHVcBJ9x
8.56am GMT
8.45am GMT
Another sign of rising confidence -- Greece's three-year and five-year bonds are also recovering this morning along with the benchmark 10-year bond.
That is pushing down their yields too:
8.41am GMT
Greece's stock market is rising in early trading, clawing back some of yesterday's big selloff.
The main Athens index has gained more than 3%, with Greece's banks bouncing back [bank share prices have either jumped or tumbled by 10% on most days since Syriza won the general election last month]
RT @ManosGiakoumis: #Greece stock market opens +3.4%, banks +8.5%. #economy #banking #makets
8.35am GMT
Greek bonds are rising, a little, in early trading, suggesting that investors are a little less worried about the crisis.
This has pushed down the yield (or interest rate) on Greece 10-year bond to 10.9%, down from 11.3% on Monday night. That's still a worryingly high yield; anything over 7% means a country is basically locked out of the markets.
8.26am GMT
George Osborne's warning may not reassure the City, where traders are already fretting about the Greek crisis.
After a period of relative calm following the ascension of Syriza to power, the type of rhetoric that investors were initially fearing is beginning to flow through.
8.20am GMT
John Longworth, the head of the British Chambers of Commerce, sounds less worried than George Osborne about the Greek crisis. He reckons British business wouldn't actually be severely hurt if Greece left the eurozone.
8.07am GMT
I suspect George Osborne's comments may not go down too well with the rest of Europe.
Our Europe editor, Ian Traynor, reports that top diplomants in Brussels reacted with bemusement to David Cameron's emergency Grexit meeting on Monday. Is the UK making too much fuss?
#grexit in brussels, senior dips, officials bemused by cameron's alleged contingency planning on greece, seen as diversionary headline-grab
7.43am GMT
Britain's chancellor of the exchequer has warned that the risks of a "very bad outcome" from the ongoing Greek debt crisis has risen.
Speaking in Istanbul, George Osborne told Bloomberg TV that there is a growing danger that the deadlock over Greece's bailout programme spirals out of control.
"It's clear that the risks to the world economy, the risk to the British economy of this standoff between the euro zone and Greece, is growing each day.
The risks of a miscalculation or a misstep leading to a very bad outcome are growing as well."
7.43am GMT
Good morning, and welcome to our rolling coverage of the Greek debt crisis, and other events across the world economy, the financial markets and business.
A sense of optimism in Athens as OECD's Gurria visits town to discuss reform pkge (& debt restructuring?). Parliament to vote on govt 2nite.
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