Eurozone approves Greek deal, but creditors voice doubts - as it happened
London's blue chip index hits record high after eurozone ministers give their approval to Athens' new economic reform plans.
- Closing summary: Greece gets a reasonable deal
- London stock market hits record high
- Eurogroup gives Greece the green light
- IMF and ECB are concerned
- Read Greece's proposals here
- Debt crisis inspires new song
7.55pm GMT
And finally finally, here's Europe editor Ian Traynor's news story on today's developments, confirming that the coming weeks will be difficult:
Greece's new leftwing government faces months of fraught negotiations with its creditors over how to ease its unsustainable debt levels and austerity programmes after securing - but only conditionally - a eurozone lifeline on Tuesday that wins it time until the end of June.
Alexis Tsipras, the Greek prime minister and leader of the Syriza movement, had to bow to German-led pressure to stick to the broad terms of its a240bn (176bn) bailout in order to obtain a four-month extension to the rescue he repeatedly pledged to scrap.
#grexit greece reform agenda secures grudging eurozone bailout extension, trouble deferred http://t.co/mGnT8u4Hjd
7.52pm GMT
A quick PS. Over in Greece tonight, the flagship evening news programme on Skai TV is saying that the government will face a three-pronged opposition: from
"I am truly very sorry. We have lost a lot of time and instead of exiting the memorandum and moving onto a preliminary credit line with more relaxed conditions we will, come July, be moving into a third memorandum."
7.45pm GMT
Enrique Diaz, Chief Risk Officer at financial services provider Ebury, sums up the situation tonight:
"Today's green light to Greece was undoubtedly good news. The deal is a reasonable one for both sides. Although the Greeks have had to abandon many of their unrealistic initial requests, the Greek Government is now once again in control of the reform process.
"That said, the outlook for the Euro remains bearish. The single currency only responded moderately to the news, rising by 0.4% against the Dollar.
7.26pm GMT
Valdis Dombrovskis, the European Commission vice-president for the Euro, tweets tonight that Greece's reform plan is a good "first step":
Speaking to reporters earlier today on #Greece pic.twitter.com/4fpff85THx
#Eurogroup confirmed reform list is comprehensive enough as valid first step. Must move forward with practical&swift implementation #Greece
Possible to negotiate replacing some measures with others with same fiscal value - if not done unilaterally #Greece
7.07pm GMT
The Greek government is briefing tonight that it has achieved some success with the eurogroup, but warned that key issues need to be clarified.
Efi Efthimiou of Capital.GR has the details:
#Greece FinMin sources:We r in uncharted water+this is coz there's no clarification yet on issues like funding +the primar surpl @capitalgr
#Greece FinMIn sources: Biggest gain from agreement reached is that there is a 4month moratorium without recessionary measures @capitalgr
#Greece FinMin sources: Today's Eurogroup was successfully completed. We have passed the obstacle (via @capitalgr )
#Greece FinMins sources: We also managed to separate loan agreement from MoU, which initially considered "unacceptable" by some partners
6.57pm GMT
Here's a photo of that CDU party meeting, where MPs apparently raised concerns over the Greek deal:
6.51pm GMT
I missed this earlier. Greece's economic reforms include an intriguing hint that they could introduce a basic income for citizens aged tween 50 and 65.
That's an important issue in economics today; with many experts arguing that in a world with less growth and major technological change, governments may have to guarantee BI for all citizens.
BI is, at its core, about a redefinition of the conception that was prevalent at the inception of the modern welfare state that the point of welfare payments were to keep people "fit for work". That may have been an appropriate moniker for its time, but modern societies have developed different expectations for the quality of life that its citizens should enjoy.
Just being fit enough to get into work doesn't cut it anymore.
The Greek government is calling for a radical new welfare policy http://t.co/L4dFU5b8fR
6.47pm GMT
Had Syriza failed? Sony Kapoor of the Re-Define thinktank argues that it has not, even though the bailout deal fails to meet all the government's pre-election promises.
He points to three victories.
The Eurozone has accepted that it is legitimate for the Greek government to put forward its own proposals as an alternative to reforms prescribed by the creditors. This is more than it appears on the surface, given the very top-down regimented and legalistic approach followed by the Troika so far....
Being a party that has thus far not been part of the clientelist state, Syriza is more likely to actually deliver on these. It will also focus more on creating an e-government, transparency and on investments essential to help build up productive sectors. Many of the reforms in the programme that has been put forward are sensible and reasonable. It has a few more weeks to put more flesh on the bone and put forward an alternative program to negotiate with the creditors when the "bridge" runs out.
It has won a precious few weeks to demonstrate to its creditors and Eurozone partners that it is a serious government and that Syriza has actually moved beyond the rhetoric of the election into the slow business of taking Greece out of its great depression. What Syriza does in the next few months will be closely watched and scrutinised for intent, as well as competence.
In a situation when minister Schiuble was once again, as in 2012, ready to push Greece out of the Eurozone and many Greece's partners had lost trust in the country, this is perhaps the most important victory.
6.29pm GMT
The German ruling CDU party have some concerns about the Greek deal, tweets the FT's Peter Spiegel.
They'll decide on Thursday whether to back it in Friday's vote in the Bundestag.
Sounds like there was a decent amt of septicism in #Schauble meeting today with @CDU's Bundestag group on #Greece http://t.co/EyMeQndQLm
The @CDU Bundestag group agreed to meet Thurs morning to take view on #Greece extension at meeting w/Schauble this pm http://t.co/EyMeQndQLm
6.16pm GMT
Greece's mountain of borrowing will eventually need to be restructured, argues debt campaigners tonight.
Sarah-Jayne Clifton, Director of the Jubilee Debt Campaign, says:
"The agreement affords a small but vital pocket of breathing space for Greece to begin to tackle its humanitarian crisis. But the fundamental injustice of the Greek debt situation remains unaddressed.
The people of Greece continue to carry the burden of debts caused by reckless, unaccountable banks. Debt crises across the world show that constant debt rescheduling does not work. Greece's debt is unjust and unsustainable, and debt cancellation is the only fair response. Syriza's original proposal for a European debt conference needs to be revived."
6.01pm GMT
Back to the Greece bailout deal, and Open Europe's Pieter Cleppe reckons the Dutch parliament will approve the four-month bailout extension on Thursday.
Majority in Dutch Lower House supports Greek deal, voting on motions related to it on Thursday http://t.co/79O1QCdtmK #greece #kolotoumba
5.59pm GMT
Read the full story of the FTSE 100's watershed day here:
FTSE 100 hits record high of 6959 after Greece's reform plan is approved http://t.co/mZgTBWFxYy
5.48pm GMT
Bookmaker Paddy Power is taking bets on when the FTSE 100 will hit 7,500 points.
5.42pm GMT
That record high looks a bit less impressive once you adjust for inflation (although don't forget those dividend payments)
FTSE 100 at an "all time high". But adjust for consumer price inflation. Shows index still 27% lower than peak: pic.twitter.com/nMpXHEg1MR
5.35pm GMT
Today is a "watershed moment" for City investors, says Tom Stevenson, investment director at Fidelity Worldwide Investment.
Investors have finally exorcised the ghost of the dot.com bubble which has haunted the market for a decade and a half. Of course, what matters is not the actual level of the market but the value it represents. In 1999 shares were grossly overvalued.
Today, thanks to rising profits over the years, UK shares are reasonably priced - not cheap but by no means expensive."
5.26pm GMT
Although the FTSE 100 is flat over the last 15 years, the value of London's blue-chip index is actually up by 67% once you include dividends:
5.19pm GMT
So is the London stock market overvalued again, as in 1999?
Laith Khalaf, senior analyst at Hargreaves Lansdown, argues that it's not.
The current P/E of the UK's largest companies currently sits at 16 times earnings.
This compares with the dizzy heights of almost 30 times earnings reached in December 1999. The long term average is 15 times earnings.It is tempting to think a new peak in the market is a good time to sell, but investors shouldn't get spooked by the FTSE 100 reaching new highs.
5.17pm GMT
5.03pm GMT
The highs of December 1999 were followed by the dot-com crash, which saw the FTSE 100 slide for two years.
It then recovered, before the credit crunch struck, followed by the collapse of Lehman Brothers and a global downturn.
Turn of the millennium to date on the FTSE 100 and a new high achieved today pic.twitter.com/pRmHLfJ5sb
4.57pm GMT
1999 was truly a dark time....
The last time the FTSE 100 was this high Westlife were number 1 with I Have A Dream-slash-Seasons In The Sun
4.45pm GMT
The FTSE 100 has just closed at a record high, finishing the day at 6949.63 points. That's a gain of 37 points today, or 0.5%.
The intraday record high was set a few minutes earlier, at 6958.89.
4.35pm GMT
Chris Beauchamp, senior market analyst at IG, confirms that Greek relief helped to drive the London stock market higher.
With Grexit risks dampened, traders are now looking forward to the launch of the European Central Bank's monetary stimulus programme.
We can stop worrying about Greece for now. With this worry removed it looks like stock markets are free to power ahead, especially as the start of ECB QE looms.
4.24pm GMT
Greek relief is only one factor that pushed the FTSE 100 over its previous alltime high this afternoon.
The final push came as Federal Reserve chair Janet Yellen testified to the Senate. She said it was unlikely that the Fed would raise interest rates in the next few months; the prospect of looser monetary policy cheered investors in Europe and New York.
4.14pm GMT
4.03pm GMT
Britain's FTSE 100 index of blue-chip shares has hit a new alltime high, breaking through its dot-com record.
Relief that Greece's bailout crisis has eased today has pushed the Footsie through the 6950 point mark, reached on the final trading day in December 1999.
3.58pm GMT
Greek news agency ANA- MPA has also heard that some Greek government ministers raised objections to the bailout plan at today's cabinet meeting [as Helena reported earlier].
Ministers and members of governing coalition partner Syriza on Tuesday expressed their reservations on the list of reforms the Greek government sent to its lenders during a cabinet meeting, state news agency ANA-MPA reported.
The list was approved in the afternoon, according to an announcement by the European Commission.
3.34pm GMT
The Greek stock market has surged by 10% today, to close at its highest level in two and a half months.
3.22pm GMT
Reports are filtering through that the atmosphere at the Greek government's cabinet session this morning was very heavy, with enraged ministers openly objecting to the aid extension agreement signed in Brussels last week.
The energy minister Panagiotis Lafazanis, who heads Syriza's militant Left Faction, emerged from the meeting "seeing red" according to reporters who were there.
Syriza's parlimentary group will now hold an emergency meeting at 8pm (6pm GMT) tonight.
3.09pm GMT
Mario Draghi, the president of the European Central Bank, has given his approval to Greece's four-month bailout extension, but also flagged up concerns in a letter to eurogroup chief Jeroen Dijsselbloem.
Dear Jeroen,
My Staff has reviewed the list of measures which the Greek authorities submitted yesterday evening. Our initial impression is that the document covers a wide range of reform areas and in this sense, it is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review. However, as we expected it was not possible for the authorities to elaborate on concrete proposals and commitments that can be assessed by the institutions in respect to growth, public finances and financial stability. Given the very limited time available, this is understandable.
3.00pm GMT
Back in Athens, the government is trying to calm fears that it has caved into its lenders.
"It's really nobody else's business how we deal with our finances internally as long as we are keeping balanced budgets."
2.56pm GMT
Christine Lagarde ends her letter with a serious warning -- as things stand, the policy proposals outlined by Greece are not enough to ensure a successful review of its IMF programme (which runs until 2016)
Here's link on @FT's website of complete @Lagarde letter to @J_Dijsselbloem on #Greece. Key sentence at page turn: http://t.co/rUcwoWNMAV
2.52pm GMT
Once EC/IMF/ECB/Eurogroup have all approved extension, each EZ member needs to sign off. Parliaments in FIN, DE, SK, AU & NL need to vote it
2.52pm GMT
The IMF's concerns probably won't stop eurozone parliaments approving Greece's four-month bailout extension, but it's another sign that the next few months will be tricky for Greece.
2.46pm GMT
Hold the euphoria. The International Monetary Fund has written to the eurogroup, criticising elements of the Greek government's reform plans.
Christine Lagarde says that:
Whilst the authorities list is comprehensive, it is not very specific, which is perhaps to be expected considered the government is new in office.
We note in particular that there are neither clear commitments to design and implement the envisaged comprehensive pension and VAT policy reforms nor unequivocal undertakings to continue already-agreed policies for opening up closed sectors, for administrative reforms, for privatisation, and for labour market reforms.
Yikes! #IMF not on board with approval of #Greece list. Excerpt from letter from @Lagarde to @J_Dijsselbloem pic.twitter.com/2nx20p8RV2
2.37pm GMT
The European Parliament has confirmed that finance ministers has approved extending Greece's bailout programme by four months.
But, in a brief statement, the ministers also want Athens to flesh out its reform measures.
The Eurogroup today discussed the first list of reform measures presented by the Greek authorities, based on the current arrangement, which will be further specified and then agreed with the institutions at the latest by the end of April. The institutions [IMF/ECB/EU] provided us with their first view that they consider this list of measures to be sufficiently comprehensive to be a valid starting point for a successful conclusion of the review.
We therefore agreed to proceed with the national procedures with a view to reaching the final decision on the extension by up to four months of the current Master Financial Assistance Facility Agreement.
#Eurogroup statement on #Greece, following today's conference call: http://t.co/uj4K8UeTr2.
2.22pm GMT
Sky's Ed Conway says that the eurogroup wants Greece to make some changes to its reform programme, and we might get the details later...
Eurogroup teleconference lasted abt an hour. Hearing there's likely to be amendments to reform list. Greek fin ministy to announce them soon
Euro zone finance ministers have approved Greece's reform plan so paving the way for Greece to receive a further tranche of bail-out funds
2.13pm GMT
I've had confirmation from my own EU sources. #Eurogroup has approved Greek list of reforms. Teleconference ended a moment ago
2.12pm GMT
IT'S OFFICIAL. The eurozone finance ministers have approved Greece's four-month bailout extension, after a one-hour conference call in which they scrutinised Athens' reform programme.
Valdis Dombrovskis, commissioner for the euro, tweets the news:
Following #Eurogroup teleconference decision national procedures for extension of the Greek programme can begin #Greece
* Greek Finance Minister official says Eurogroup approves Greek reform plan - RTRS
2.06pm GMT
The Slovakian finance minister's media team has tweeted that the Greek bailout deal "holds".
They add that the eurozone is eager to see firm details on Athens' plans in the weeks ahead.
#eurozone deal with #Greece reached on Fri holds. Greeks have lots of heavy-lifting to do until end-April. We all want to see numbers now.
2.02pm GMT
Crisis delayed, but perhaps not denied?
Crisis averted, until, like April. (BN) *GREEK AID EXTENSION SAID TO BE APPROVED BY EURO-AREA MINIS TERS
1.58pm GMT
Newsflash from Bloomberg, saying the eurozone finance ministers have approved Greece's reform package.
Greek bailout extension said to be approved by Euro area Bloomberg
1.45pm GMT
Our Europe editor predicts a lively few months ahead....
#grexit looks like @tsipras_eu passes first test. loadsa fun to come tho
1.15pm GMT
12.58pm GMT
OECD chief Angel Gurria spoke about the Greek crisis in London today:
OECD Gurria: "we have been working with Greek govt now for many many years and we are happy to support the new govt" pic.twitter.com/850MbGsLC3
OECD Gurria on Greece talks says want to express "hope and support that clearly there should be a convergence"
12.57pm GMT
A brief recap.
Eurozone finance ministers are getting ready to hold a eurogroup conference call to decide whether to accept a list of economic reforms proposed by the Greek government last night.
We are encouraged by the commitment to combat tax evasion and corruption, inter alia through efforts to modernise tax and custom administrations, as well as to pursue reforms to modernise the public administration.
The Commission also notes the commitments in the area of statistics and considers it of vital importance that the institutional and operational independence of ELSTAT and its senior management be respected at all times.
RT @BrunoTersago Salonica bishop #Anthimos,repeatedly preaching against left-wing political parties,gave his blessing to #Tsipras #GrAija
12.41pm GMT
#grexit @eu_comission tells @J_Dijsselbloem 'we are encouraged' by greek reform menu. 'determined swift implementation will be key'.
12.34pm GMT
Newsflash from Brussels.... the Commission has digested the long list of reforms emailed by Greece last night (see earlier post) and concluded that they are "sufficiently comprehensive" to pass muster.
However, it wants to see these commitments turned into actual actions.
12.29pm GMT
Here's your daily reminder of the debt repayments Greece faces this year:
#Greece debt repayments due: March a1.4bn June a1.4bn July a3.5bn August a3.2bn Sept a1.4bn Dec a1.4bn pic.twitter.com/6gp3w2nddt via @ALeipold
12.28pm GMT
Life may get harder for the new Greek government when it tries to get its reform plans into law.
Joan Hoey, senior analyst at the Economist Intelligence Unit, predicts tough battles in the Athens parliament, which could even bring down Alexis Tsipras's government.
"Syriza is already facing criticism and dissent within its own ranks and may also encounter opposition from its coalition partner, the anti-bailout Independent Greeks. We expect implementation difficulties, given previous strong commitments made by Syriza to reverse previous reforms, stop privatisation, restore the minimum wage, etc, commitments which it has now had to drop.
The issues on which the previous government fell-austerity and reform implementation-will not go away. The prospect is therefore for continued political instability in Greece and we forecast that the coalition will not last longer than 12-18 months. We continue to assign a 40% risk to a Grexit".
12.04pm GMT
Greece's deputy minister in charge of administrative reform has warned that the newly-installed government is ready for a fight - dispelling accusations that the Syriza-led administration is about to conduct a major u-turn.
"That is going to be vital to restoring the trust and credibility deficit Greece has suffered."
"high intellectual calibre, secondly they believe in what they are trying to achieve, and thirdly they have the persistence and clarity to continually change what they want so that they arrive at a good result " that is, they are two men who are fighting and struggling. We have to recognise that."
11.59am GMT
11.56am GMT
OECD warns UK must fix productivity problem to raise living standards. Story and key charts from today's report http://t.co/okkyQKNaYJ
11.53am GMT
Christmas has come early for chancellor George Osborne. The head of the OECD is congratulating him on the economic recovery, and urging the UK to stick with the current plan.
OECD head Gurria: "Britain has a long term economic plan but it must stick with it" pic.twitter.com/0WDw7BnmMf
Gurria on uk's labour market reforms - "textbook" and "best practice". The love in is getting embarrassing ...
Tough talk from OECD head Gurria: "My main message today is well done. Well done Chancellor."
11.47am GMT
Over in London, the Organisation for Economic Co-operation and Development (OECD) is presenting a report on the UK economy.
And it's warning that Britain must fix its productivity problem to secure future economic growth and improve living standards.
OECD warns UK must solve productivity problems to raise living standards. Am tweeting from report launch at Treasury pic.twitter.com/Afo45ZSTyH
OECD head Gurria says UK labour market performance has been "remarkable", economic growth last year fastest on g7
OECD head Gurria: "a swallow does not a spring make but real wages are on the rise" "what a difference effective economic policies can make"
11.34am GMT
One man's sensible compromise is another man's shameful capitulation, of course.
Any deal that is waved through by the eurogroup is likely to fuel criticism from those in Greece who expected Syriza to defy their creditors.
Syriza response though will be massive let down to those who wanted Greece to lead a charge to something diff in EZ
Looks like a solid list of sensible reforms. No wonder Troika happy. Question now is whether Syriza can deliver. http://t.co/Cf07i7j0Er
11.27am GMT
The Greek stock market is still soaring, up over 7% today.
How stock market reacted to news Greek reform list welcomed in Brussels HT @YahooFinance #Greece pic.twitter.com/YgFC4gq857
11.15am GMT
You might find this pdf of Greece's reform proposals a little easier to read (it's the same as the version posted earlier).
Just got my mitts on pdf of #Greece's 6-page letter to @J_Dijsselbloem on promised economics reforms. Posted here: http://t.co/np0ro8uK9v
11.05am GMT
Greece's reforms plan looks like a sensible compromise between the Greek government's promises and the demands of its creditors, commentators say.
Greek journalist Nick Malkoutzis reckons the pledge to 'modernise' pensions could cause ructions:
Pensions & privatisations 2 of thorny issues in govt's reform proposals. A lot of other content likely to have broad support though #Greece
This list will be approved by the Eurogroup, even w reservations. It's much more comprehensive & detailed than what was 'leaked'. #Greece
The big picture: Greek reform programme well short of Syriza election programme but with important wins for the new government.
nothing specific but I *think* "EU/ILO best practice", in the absence of any other comment means Syriza gave up on mass layoff rules
"a new, 'smart' approach to collective bargaining" sounds pretty ominous for Greek labour unions, who have never liked either new or smart
So on the important things - minimum wage kicked into long grass, foreclosures they crumbled, pensions they got a bit
10.50am GMT
Newsflash: eurozone finance ministers will hold a conference call at 2pm Brussels time (1pm GMT or 3pm EET) to discuss Greece's plan.
#Eurogroup conference call on Greece at 14.00 this afternoon.
10.45am GMT
Reuters has now published the full text of Greece's reforms.
At first glance it is broadly as expected -- lot of commitments to reform the tax base, fight corruption, and improve Greece's public sector.
Reform VAT policy, administration and enforcement. Robust efforts will be made to improve collection and fight evasion making full use of electronic means and other technological innovations. VAT policy will be rationalised in relation to rates that will be streamlined in a manner that maximises actual revenues without a negative impact on social justice, and with a view to limiting exemptions while eliminating unreasonable discounts.
Modify the taxation of collective investment and income tax expenditures which will be integrated in the income tax code.
Adopt amendments to the Organic Budget Law and take steps to improve public finance management. Budget implementation will be improved and clarified as will control and reporting responsibilities. Payment procedures will be modernised and accelerated while providing a higher degree of financial and budgetary flexibility and accountability for independent and/or regulatory entities.
Devise and implement a strategy on the clearance of arrears, tax refunds and pension claims.
Greece will modernise the tax and custom administrations benefiting from available technical assistance. To this end Greece will: Enhance the openness, transparency and international reach of the process by which the General Secretary of the General Secretariat of Public Revenues is appointed, monitored in terms of performance, and replaced.
Strengthen the independence of the General Secretariat of Public Revenues (GSPR), if necessary through further legislation, from all sorts of interference (political or otherwise) while guaranteeing full accountability and transparency of its operations. To this end, the government and the GSPR will make full use of available technical assistance.
The Greek authorities will: Review and control spending in every area of government spending (e.g. education, defence, transport, local government, social benefits)
Work toward drastically improving the efficiency of central and local government administered departments and units by targeting budgetary processes, management restructuring, and reallocation of poorly deployed resources.
Greece is committed to continue modernising the pension system. The authorities will: Continue to work on administrative measures to unify and streamline pension policies and eliminate loopholes and incentives that give rise to an excessive rate of early retirements throughout the economy and, more specifically, in the banking and public sectors.
Consolidate pension funds to achieve savings.
Greece commits to:
Improve swiftly, in agreement with the institutions, the legislation for repayments of tax and social security arrears Calibrate instalment schemes in a manner that helps discriminate efficiently between: (a) strategic default/non-payment and (b) inability to pay; targeting case (a) individuals/firms by means of civil and criminal procedures (especially amongst high income groups) while offering case (b) individuals/firms repayment terms in a manner that enables potentially solvent enterprises to survive, averts free-riding, annuls moral hazard, and reinforces social responsibility as well as a proper re-payment culture.
Greece is committed to: Banks that are run on sound commercial/banking principles Utilise fully the Hellenic Financial Stability Fund and ensure, in collaboration with the SSM, the ECB and the European Commission, that it plays well its key role of securing the banking sector's stability and its lending on commercial basis while complying with EU competition rules.
Dealing with non-performing loans in a manner that considers fully the banks' capitalisation (taking into account the adopted Code of Conduct for Banks), the functioning of the judiciary system, the state of the real estate market, social justice issues, and any adverse impact on the government's fiscal position.
To attract investment in key sectors and utilise the state's assets efficiently, the Greek authorities will: Commit not to roll back privatisations that have been completed. Where the tender process has been launched the government will respect the process, according to the law.
Safeguard the provision of basic public goods and services by privatised firms/industries in line with national policy goals and in compliance with EU legislation.
Greece commits to:
Achieve EU best practice across the range of labour market legislation through a process of consultation with the social partners while benefitting from the expertise and existing input of the ILO, the OECD and the available technical assistance.
Removing barriers to competition based on input from the OECD.
Strengthen the Hellenic Competition Commission.
Address needs arising from the recent rise in absolute poverty (inadequate access to nourishment, shelter, health services and basic energy provision) by means of highly targeted non-pecuniary measures (e.g. food stamps).
Do so in a manner that is helpful to the reforming of public administration and the fight against bureaucracy/corruption (e.g. the issuance of a Citizen Smart Card that can be used as an ID card, in the Health System, as well as for gaining access to the food stamp program etc.).
10.20am GMT
Over in Athens, prime minister Alexis Tsipras has just ended a meeting with one of the country's leading anti-austerity voices, the celebrated composer Mikis Theodorakis.
Our correspondent Helena Smith reports that the meeting was organized after the academy award-winning composer penned a lacerating letter in which Theodorakis called for Tsipras' radical-left Syriza party "to find the strength, even now, to say OXI [NO] to [German finance minister Wolfgang] Schiuble's 'NEIN.'
Tsipras, it has emerged, telephoned the composer to congratulate him on the statement shortly after its release!
The meeting, which took place before a cabinet meeting at 12pm local time (10am), is aimed at nixing the mounting dissent within Syriza's ranks over what is perceived to be the government's climbdown in Brussels last week.
10.15am GMT
Analyst Hugo Dixon of Breaking Views has given the thumbs-up to Greece's plan (see last post)
1 On first read, Greek list of reform measures looks pretty good. Lots of stuff on combatting tax evasion, corruption, special privileges
2 No red rags from Greece either: eg minimum wage only raised over time in way that safeguards competitiveness, no privatisation rollback
3 even Greece's humanitarian programme (eg food stamps) is supposed to have no negative fiscal effect
10.11am GMT
Greece's reforms list includes a pledge not to roll back any state asset privatisations, according to Reuters, which has seen a copy this morning.
It also includes a pledge that the efforts to address Greece's humanitarian crisis will not "hurt" its budgets (ie, push them back into deficit).
The list also includes pledges to reform tax policy, review and control spending in "every area" of government spending.
It also commits to consolidating pension funds to achieve savings and eliminate loopholes and incentives for early retirement - in an apparent effort to find a compromise between the government's stated objective to avoid any further pension cuts as previously demanded by EU and IMF inspectors.
10.04am GMT
My webfeed of Dijsselbloem's appearance has now crashed.
But apparently the eurogroup chief is explaining that last month's Greek general election can't change the way the whole eurozone operates.
Syria a clear message form Greek voters but 18 other electorates, says @J_Dijsselbloem. Eurozone pits people's against each other
Basically, @J_Dijsselbloem is admitting that if a people want to decide own economic policies, social democracy, then must leave euro
Interesting. @J_Dijsselbloem announces that eurozone is a political union. I wonder if voters in France, Netherlands, +16 have been told yet
9.53am GMT
Dijsselbloem looks in cheery mood this morning:
9.48am GMT
It's possible that Greece could get some form of debt relief in future, once it has met all the targets in its existing programme, Dijsselbloem says.
Eurogroup's Dijsselbloem: If Greece Meets All Criteria, EZ Ministers Could Consider Further Debt Relief Measures
9.43am GMT
Ouch! Jeroen Dijsselbloem tells MEPs that only one country held a meeting to discuss the dangers of Greece leaving the eurozone -- and that was Britain.
That's a reference to the emergency meeting chaired by David Cameron two weeks ago, as the Greek bailout crisis escalated.
ECB, Germany, EC and Dutch government (with @J_Dijsselbloem in cabinet) discussed Greece leaving euro in 2012. His comments not credible
9.31am GMT
The eurozone will stick together, Dijsselbloem insists. Grexit is not an option.
#Dijsselbloem: Agreement on Greece was necessary - but was a political challenge. #Grexit simply not on the table.
9.28am GMT
Disappointing! Jeroen Dijsselbloem has ducked the opportunity to to give his opinion of Greece's list of reforms ahead of this afternoon's conference call.
9.26am GMT
Apparently the Greek proposals arrived in Jeroen Dijsselbloem's inbox at 11.15pm last night -- or shortly after midnight in Athens.
#Dijsselbloem says #Greece letter arrived in his inbox at 23:15 last night. So, no delay. But he admits trust was lost with #Tsipras gov.
9.18am GMT
Ireland remains a poster boy for the eurozone. Dijsselbloem is telling MEPs that the country is making "strong progress on all fronts", with Irish employment growing impressively.
9.14am GMT
Jeroen Dijsselbleom has confirmed that the Greek reforms plan arrived "just in time".
#Dijsselbloem says #Greek reform list arrived 'just in time'
9.10am GMT
Heads-up. Eurogroup chief Jeroen Dijsselbloem is testifying to the European Parliament's Economic and Monetary affairs committee now.
He's expected to discuss the Greek bailout.
9.09am GMT
Newsflash from Berlin: the German parliament will vote on Greece's bailout extension on Friday.
#Germany | CDU chief whip says German lawmakers will vote on #Greece Friday. /via @FerroTV
9.00am GMT
8.56am GMT
The Greek debt crisis now has its own song.
Will Butler of Canadian indie rock group Arcade Fire is penning new tunes this week, inspired by something he's read in the Guardian each day.
I was reading the Guardian's live coverage of the forthcoming Greek proposals of how they're going to pay off their debts, when a little blurb popped up explaining that the Greek markets were closed today because it was "Clean Monday" - the Greek Orthodox equivalent of Ash Wednesday. It was an amazing/hilarious (well, maybe mildly amusing) coincidence to me that the Greek ministers were scrambling and figuring out how to avoid strict austerity on the day that Lent starts.
Heeere you goooooo: http://t.co/6rcVoj0AKk
8.39am GMT
The Greek stock market is soaring, up 7.2% in early trading.
The ATG index has hit its highest level since early December 2014, with bank shares surging by around 14%.
8.26am GMT
Wolfgang Schiuble's letter to the Bundestag also shows that Germany is determined that Greece sticks to the bailout agreement agreed in 2012, Ian Traynor adds.
It says that "the aim of the extension is the orderly conclusion of the programme review."
8.19am GMT
Greek bonds are strengthening in value this morning, as markets welcome the news that its reform plans have been submitted, and may well be approved.
This has pushed down the yield (effectively the interest rate) on Greek debts this morning, showing traders think the risk of default has fallen.
#Greece's bonds rally as Greek reform measures in line w/ demands set out by #Eurozone FinMins http://t.co/K9PwJEFnpR pic.twitter.com/dtQ7sSn83Q
8.02am GMT
Encouraging news for Athens. The eurozone's chief hawk, Wolfgang Schiuble, has asked German MPs to back Greece's bailout extension.
"The Federal government advocates the proposed extension, against the background of Greece's acknowledgment of its commitments and the agreement in the eurogroup."
The Bundestag has to support last Friday's eurogroup pact with Greece, as do a few other eurozone parliaments... though it might be argued that some parliaments are bigger than others.
If all goes well today, the Bundestag could back the package on Friday, a day before what is now called the 'current arrangements' expire.
#grexit monday evening schaeuble sent 4-page letter to bundestag speaker supporting 4-month bailout extension http://t.co/gDqT6D0mgJ
7.51am GMT
A Commission source has told Reuters that Greece's list of reforms is "sufficiently comprehensive to be a valid starting point for a successful conclusion of the review," adding:
"We are notably encouraged by the strong commitment to combat tax evasion and corruption."
7.44am GMT
European Commission spokeswoman Mina Andreeva has confirmed that Greece got its menu of reforms in before the midnight deadline.
List of reform measures of #Greek government received on time. @JunckerEU @EU_Commission
7.41am GMT
Good morning, and welcome to our rolling coverage of the Greek bailout negotiations and other key events across the world economy, the financial markets and business.
We start with some breaking news... Greece has taken a big step towards finalising its four-month bailout extension by submitting its list of planned economic reforms to Brussels.
List of reform measures of Greek government received on time.
The Holy "Troika" due to speak today - #BoE's Carney, #ECB's Draghi and #Fed Chair Yellen
Continue reading...