European leaders hold meeting on Greek bailout –as it happened

Graeme Wearden

from on 2015-03-20 02:15 (#57XN)

Greece has agreed to present a new list of reforms plan quickly, after top-level overnight talks in Brussels

2.32am GMT

So, in summary, Greece has promised to speed up the implementation of its extended bailout agreement and will send a full list of detailed reform proposals to its euro zone partners very soon.

Not a big breakthough, but perhaps all Alexis Tsipras could hope for. It means Greece could yet unlock some of its bailout money, if it can satisfy its creditors with a credibly reform plan.

2 summits in row @tsipras_eu sounds banal. hot air. maybe works back home. merkel much more specific. he wanted meeting. she wasn't bothered

2.25am GMT

Greek PM Alexis Tsipras has told reporters that he's more optimistic after tonight's meeting, even though European leaders don't appear to have budged.

TSIPRAS: "Process back on track" #Greece not obliged to take recessionary measures pic.twitter.com/TdRUsPLTsK

#Tsipras : negotiation process back on track" pic.twitter.com/MxxVdWrjTX

2.11am GMT

French president Francois Hollande is briefing the press now (lifefeed here).

He confirms that Greece must present new reform plans ASAP; there's no time to lose. And he also suggests that some aid could be forthcoming once Greece's progress has been evaluated.

Merkel and Hollande have different interpretations of Greek agreement. Merkel: No money without review. Hollande: Money after evaluation.

2.07am GMT

At a brief press conference, Angela Merkel has told reporters that there was "disappointment" that more progress hasn't been made since Greece secured its bailout extension a month ago.

#Merkel: The #Greek gov will show full responsibility of the reforms and next days will send us a list of specific reforms

More Merkel: "There was disappointment that that what we expected didn't happen after Feb 20" #Greece

2.05am GMT

And finally, the meeting is over. In a short statement, the European Council say that attendees at tonight's (last night's) meeting are sticking to the agreement made last month.

Greece must present a "full and adequate" list of reforms, fast, and all sides have agreed to work faster to make progress.

Following three hours of talks that ended after 2 in the morning, German chancellor Angela Merkel made it plain that there would be no quick disbursement of emergency aid to Greece unless Tsipras delivered on unfulfilled pledges to supply a full menu of proposed structural reforms to the Greek economy.

The credibility of Tsipras' proposals would need to be supported by eurozone governments before Greece, on the brink of insolvency, could obtain the financial support.

"@Mina_Andreeva: .@JunckerEU @J_Dijsselbloem @eucopresident statement after meeting on #Greece pic.twitter.com/mz7vz7VbWl"

12.50am GMT

1:39am and still in #EU summit building. Seems like old times #Greece pic.twitter.com/RPQgN7U4f1

12.43am GMT

You have to admire these leaders' stamina...

#EUCO heading towards 2a.m bxl, 3 hrs of @tsipras_eu mini-summit. he must be doing ok.but merkel can outsit any male. did 17 hours in minsk

12.35am GMT

If there are any press briefings in Brussels, they should be streamed online here....

12.25am GMT

Reporters in Brussels are hearing that Greece is being urged to implement some reforms immediately, to unlock the first slice of its outstanding bailout payment of over 7 billion euros.

#Greece asked to change attitude towards technical teams, also suggest a plan of immediate reforms, via @doleross #EUCO

12.12am GMT

Greece has apparently been told to be more welcoming to officials representing its creditors in Athens:

#Greece, Eu sources: until now Eu technicians in Athens could not work safely, we said to @tsipras_eu that that needs to change

12.04am GMT

The Greek meeting hasn't finished yet - Suzanne Lynch of the Irish Times has heard that some common ground is emerging between the leaders:

#tsipras + EU leaders 'Identifying areas that can be tackled quickly' for reform says EU source on ongoing #Greece mini-summit

12.01am GMT

Another date for the diary, possibly....

Extra #Eurogroup meeting possibly next week ~Greek official

11.54pm GMT

An EU official has also suggested that another (!) meeting of eurogroup finance ministers may take place soon....

11.52pm GMT

More details on the wires...

Juncker 'annoyed' over Greek govt's attitude toward 'technical staff' /via @tsigouriX #GreeceMiniEuCo

11.51pm GMT

Details of tonight's meeting are starting to emerge.

An EU official has told Bloomberg that talks between Greece and its creditors were "frank" at times (euphemism alert!) and that the Greek government has enough funds to last until next month.

Exchanges at Greece meeting were "often frank", EU official says...

#EU official says #Greek cash should last until April

11.11pm GMT

Tonight's meeting will set the scene for Monday, when Greece's prime minister visits Berlin.

The Wall Street Journal reports tonight that Angela Merkel is poised to "intervene directly in a deepening rift between Greece and its international creditors".

The chancellor's message for Mr. Tsipras-that Greece has no alternative to cooperating with finance officials' demands-is likely to disappoint the Greek leader's hope for a lenient funding deal.

10.50pm GMT

Reminder; we're not expecting much from this meeting.

Hours ago, Angela Merkel said it would not deliver a breakthrough, and several other leaders have emphasised that they want to see Greece delivering on its commitments before bailout cash is handed over.

10.45pm GMT

Alexis Tsipras looked rather more cheerful than Mario Draghi at the start of tonight's mini-summit meeting on Greece:

10.31pm GMT

Heads-up: we might hear from Angela Merkel tonight:

The meeting on #Greece in a small group format just started. Afterwards press conf. by Chllr #Merkel. pic.twitter.com/13XIlWd51K MT @RegSprecher

10.31pm GMT

Update from Ian - that 20m fund announced by David Cameron tonight is a UK-only affair:

#EUCO cameron unveils very small fund for eastern europe. it's uk only. eu not invited. why go to brussels to do that?

10.28pm GMT

Ahha! European officials have just released a short video of the start of the meeting on Greece tonight:

It's online here - unfortunately everyone is on their best behaviour, but you can see Alexis Tsipras, Angela Merkel, Francois Hollande, Donald Tusk, Mario Draghi, Jean-Claude Juncker and Jeroen Dijsselbloem all in attendance.

IIIIIfII1/4I...I IIII II I^2IIII^1 II IIII^1 III...!!! pic.twitter.com/Z4770hyLgF

10.24pm GMT

Back in Greece, Mega TV's political analyst Nikos Evangelatos, citing senior government officials, has told the station's flagship news programme that the Greek side was attending the talks "with a goal, hope and fear."

"The goal is to get a deal," he said, adding:

"The fear is that a new card will be put on the table and that creditors demand Greece completes [the last] programme with an evaluation of public finances [a red line for a government that wants nothing to do with the previous bailout accord], and the hope is that more money is released because the 400 million euros in ELA funds disbursed [last night] from the European Central Bank are only enough to keep the country going for a couple of days."

10.02pm GMT

Europe editor Ian Traynor tweets news from the UK PM:

#EUCO cameron announces 20m good governance fund for post-soviet, post-yugo places. modelled on thatcher's 89 knowhow fund for poland

9.58pm GMT

Small #Greece kerfuffle in main #EU summit session. @MartinSchulz defended @atsipras, who said he wants 2 clear confusion on Feb 20 agreemnt

9.58pm GMT

The most important thing is Tsipras's intentions, not ours, Tusk adds.....

#EUCO @eucopresident going in to chair @tsipras_eu mini-summit: 'he requested it. most important thing is his intentions, not ours.'

9.54pm GMT

European Council president Donald Tusk appears to have downplayed hopes of a breakthrough, by reminding reporters that the meeting tonight was Tsipras's idea....

9.50pm GMT

The mini-summit about Greece is now underway, reporters on the ground in Brussels say.

9.24pm GMT

Hello again. Greek government sources say that Alexis Tsipras has been briefing fellow leaders about the humanitarian crisis in Greece tonight.

He hopes to establish common ground during tonight's talks, and is unhappy that officials from Greece's creditors have drawn "red lines", preventing Athens making progress on implementing last month's the bailout extension deal, adds our Helena Smith.

6.45pm GMT

Looks like Brussels is going to be quiet for some hours <tempting fate>.

6.34pm GMT

Here's tonight's official seating plan:

Oh @alexstubb: #EUCO seating arrangement. No new colleagues. Order of rotating Presidency. pic.twitter.com/0VoXt7LBJ8

6.13pm GMT

Tonight's meeting on the Greek crisis will start after leaders have had dinner -- and Marco Zatterin of La Stampa suggests it could be a late one:

Pino the Eu Octopus foresees the beginning of the Eu Greek meeting in bxl "around 11 pm" @la_stampa #EUCO

5.36pm GMT

European leaders got down to business tonight after holding the traditional family photo - once everyone turned up, that is...

5.18pm GMT

Britain's FTSE 100 index has set a new record closing high tonight, by a whisker, on expectations that central banks will leave interest rates at record lows for longer.

The blue-chip index finished the day up 17 points at 6962.32, up 0.25%, beating the previous record of 6961 set on March 5th.

#FTSE 100 closed at 6962, +0.25% All time high

4.49pm GMT

Back at the summit our Europe editor, Ian Traynor, is hearing that several smaller EU nations are unhappy about tonight's mini-summit on Greece.

#EUCO at least another 2 countries joined belgium complaining about small format tsipras talks, demand to be briefed - eu diplomats

#EUCO benelux annoyed about @tsipras_eu special talks, summit delayed bc of complaints - eu dips

4.28pm GMT

So why has the Greek prime minister pressed for today's mini-summit on the sidelines of the Summit tonight?

Insiders in his Syriza party are saying it is not only because he wants to get a lay of the land ahead of Monday's meeting with the German chancellor. Liquidity - or the lack of it - is the main reason.

"What we are doing is seizing the moment to press for a political solution before the four-month [bailout extension] period runs out. Liquidity has become a huge problem and if we don't resolve that how on earth will we be able to proceed with anything else?"

"If anything, an accident would take the form of a run on banks."

4.17pm GMT

The selloff in Greek government bonds is accelerating this afternoon as the summit begins, as markets are gripped by fresh worries over its bailout.

The yield on Greek 10-year debt has jumped to 12.2%, up from 11.2% last night. That's the highest level since April 2013, and suggests a higher risk of default.

#Greece 10-year bond yield climbs above 12%; first time since April 2013 /via @advdesk

4.08pm GMT

A sombre start to the summit:

One minute of silence. The European Council pays tribute to the victims of the terrorist attack in #Tunisia. #EUCO pic.twitter.com/wwLuQ51Ltd

4.00pm GMT

More signs of discord in Brussels:

Enda Kenny attacks language used by Greek govt: "There's a difference btwn political argument + threats of releasing jihadists into Europe."

3.24pm GMT

Ireland's prime minister, Enda Kenny, has predicted it could be "quite a difficult meeting', and that Greece must face its responsibilities:

"The feeling among the political leaders is that Greece and Greek politicians have to live up to their responsibilities here. The ball is in their court.

The prime minister asked for time and space and he has been given that to come forward with sustainable and workable proposals. Greece needs to reflect on that very quickly because time is running out."

3.21pm GMT

Here's what Alexis Tsipras told Brussels reporters as he arrived for the summit:

"The European Union needs brave political initiatives, which respect both democracy and the treaties.

"Let us leave the crisis behind us and be led toward growth".

3.10pm GMT

Denmark's prime minister, Helle Thorning-Schmidt, told reporters outside the summit that the rhetoric between Athens and Berlin does not belong in the EU.

3.09pm GMT

Greece's PM has urged his fellow leaders to be bold today:

#TSIPRAS: The European Union needs bold political initiatives #Greece #EUCO pic.twitter.com/e5vHqyROwB

3.06pm GMT

There must be an election soon:

UK PM Cameron: When I came to my first #EUCO in 2010, Britain and Greece were virtually in the same boat.

Cameron: Reason why UK is now in different situation from Greece is we took difficult long-term decisions. #EUCO

Oh dear: Cameron says UK and Greece were in the same position five years ago. The reason why UK growing now is his "difficult" decisions.

2.40pm GMT

Greece must get its wealthiest citizens to pay their taxes, declares French president Francois Hollande as he arrives in Brussels.

#Hollande "Ce qu'on demande a la #Grice c'est qu'elle demande aux plus riches de payer des impits" #EUCO

MT @lidabola #HOLLANDE "We want Greece to get its rich to pay their taxes" #Greece pic.twitter.com/xlFa5XhXWx

2.26pm GMT

Angela Merkel has dashed any lingering hopes of a breakthrough -- telling reporters outside the summit that they shouldn't expect a solution to the Greek crisis tonight.

That's a blow to Alexis Tsipras's hopes of a political deal to resolve the crisis, rather than through the technical talks with eurozone officials.

Merkel kills it again on arrival at #EUCO: 'Do not expect any solution, do not expect a breakthrough' #Greece

so Merkel doesn't expect any solutions on #Greece today. Why is it left to the #Eurogroup to hold #Europe together?

2.24pm GMT

Finland's @alexstubb has 'full confidence' in France and Germany handling Greece at summit sideline meeting #EUCO

2.20pm GMT

There's open rancour in Brussels before the summit even starts.

Belgium's prime minister, Charles Michel, has blasted tonight's meeting between Greece, its creditors, and the leaders of Germany and France.

"It's a bad method."

2.09pm GMT

UK interest rates are as likely to be cut to fresh record lows as they are to be raised.

So says Andy Haldane, the Bank of England's chief economist, in a speech in Rutland right now [online here].

Given the asymmetry of inflation risks, I think the chances of a rate rise or cut are broadly evenly balanced.

Inflation has dropped like a stone over the past year, to close to zero. This largely, but not wholly, reflects external forces. On the MPC's central view, inflation will remain close to zero in the near-term, before rising to reach the inflation target over a two-year horizon. The risks to inflation at that horizon are plainly two-sided. But my personal view is that these risks are skewed to the downside. In my view, that means policy needs to stand ready to move off either foot in the period ahead to meet the symmetric inflation target.

Andrew G Haldane, as @bankofengland now style him, is concerned about "drag" from labour market slack; inflation expectations; sterling.

Andy Haldane, the Bank of England's chief economist, has just outed himself as the secret dove on the MPC. pic.twitter.com/rn9injhuVa

1.49pm GMT

Good to see Greek prime minister Alexis Tsipras showing some thrift; he and his team were spotted in economy class heading to today's Summit. Hat-tip to Enikos.

Alexis Tsipras travels economy class to crucial EU Summit - PHOTOS - http://t.co/qgavCo1Hrs pic.twitter.com/X42mdBjrZJ

II(R)I1/4III I^2II^1IfIII1/4IIfII IfII^1I I'II...I3/4IIIII, IfII IIIIII IIII...II(R)I. #EUCO #Greece pic.twitter.com/0Ir5113f1r

1.40pm GMT

Both the FT and Reuters are reporting that depositors withdrew at least a300m from Greek banks yesterday.

That would be the biggest daily outflow since last month's bailout extension was agreed in February.

"Depositors are nervous already and the suggestion that Greece could follow the example of Cyprus two years ago made them react."

1.38pm GMT

And here's a video clip of Donald Tusk talking about Greece:

EU's Tusk: Meeting is not 'last chance' for #Greece http://t.co/tAOIO6wMXO

1.19pm GMT

Here are European Council president Donald Tusk's comments on Greece at a news conference ahead of today's summit, via Reuters.

"Nobody wants a so-called Grexit. And everybody wants to avoid a so-called Grexident."

"This informal meeting will not be a decisive meeting, because we have a formal format to take decisions [ie the, Eurogroup of finance minister]".

"This is something like consultations. (They are) needed because we try to avoid confrontational political discussions and my intuition is that today at the level of the European Council the discussion could be a little bit too hot."

My remarks following the #TripartiteSocialSummit & ahead of the European Council #EUCO http://t.co/PSHI8j9z2Q pic.twitter.com/Wgw8o3HR3q

Unemployment is still unacceptably high in some countries, and there is an urgent need for labour market reforms in the eurozone. However, the economic tide is turning. And by continuing with structural reforms, we are ensuring that this will be a long-term improvement, not a brief crack of light.

12.51pm GMT

Back to important issues, and the draft conclusions of the EU Summit have leaked, showing that leaders are planning a fightback against Russian 'disinformation' over Ukraine.

HUGE: @donaldtusk to launch programme countering Russian propaganda by June - #EUCO draft conclusions (@tineurope) pic.twitter.com/g9vka5n1rH

12.49pm GMT

Lord, give me strength....

Surprise: SATIRIST who admitted to faking Varoufakis middle-finger video wasn't being serious! New @OpenEurope blog: http://t.co/dW3PuHDn1C

12.20pm GMT

European Council president Donald Tusk has played down the importance of tonight's talks, saying that it's not the last opportunity to resolve the Greek crisis.

11.58am GMT

Finland's prime minister, Alex Stubb, has warned that Athens can't expect another bailout extension.

#Greece Has Four Months And Not More, Finland's Stubb Says. #Grexit AB

11.50am GMT

This is encouraging... European banks borrowed a97.8bn of cheap loans from the ECB, through its latest liquidity scheme.

That's more than economists expected, and suggests that demand for credit from businesses and consumers is rising.

The take-up at today's TLTRO exceeded expectations, with 143 banks borrowing an extra a97.8bn from the ECB.

TLTRO will help expand the ECB's balance sheet at the margin but, more importantly, they will contribute towards improving monetary policy transmission and to lower borrowing costs even further.

WOW #TLTRO. EUR98bn and 143 bidders (vs. 255 and 306 in the previous two). Should provide a boost to bank lending in the periphery.

My TLTRO reaction piece - More important than you think. http://t.co/cA2Es4hzfM

11.46am GMT

Greek bond yields are continuing to climb this morning, on fears that the deadlock won't be broken in time.

#Greece 10Y govt bond yields up 23 bps ahead of EU summit. Poised for highest close since July 2013. pic.twitter.com/BLNuGtTbpt

10.56am GMT

Over in Athens, our correspondent says there is are hopes that an "honourable" deal could be being hammered out at tonight's mini-summit between the Greek PM and other leaders.

"An honourable compromise is what we want."

"We will go ahead with legislation and after we will tell them why we are doing it."

"This country takes orders only from the people, we are a country that has regained its national sovereignty."

10.51am GMT

European Commission President Jean-Claude Juncker has echoed Angela Merkel this morning, saying Athens must stick to its promises.

"I will repeat to him what I've already told him twice: Greece must undertake the necessary reforms, Greece must ensure that the commitments it made to the Eurogroup in 2012 and more recently are followed up on."

10.17am GMT

A new opinion poll this morning shows a majority of Greeks still favour sticking with the euro rather than returning to the drachma:

Keep a and memorandum or return to drachma? 61.2% of Greeks would vote to keep a (Marc/@ALPHA_TV poll). #Greece pic.twitter.com/7Hp4zD69Ed

#Greece Marc poll: Syriza 40.2, ND 21, KKE 4.9, GolDawn 4.8, IndGreeks 4.5, Potami 4.3, Pasok 2.5, GPap 1.8, other party 3.3

New Marc/@ALPHA_TV poll: Greek gov't approval rating down to 59.8% from 83.1% last month. Still high, but... #Greece pic.twitter.com/B7pSnNqy70

10.09am GMT

There's a good preview of today's European Council meeting on the BBC, explaining how leaders will try to resolve the Greek crisis on the margins of the summit.

The aim is to break the deadlock that has developed between Greece and its creditors about the terms agreed last month for an extension of its huge financial bailout.

As time has dragged on, concern has risen that Greece could soon run out of money. There is only a matter of weeks left before another "crunch" comes.

9.58am GMT

My colleague Julia Kollewe has written about the FTSE 100 index hitting a fresh record high this morning:

9.52am GMT

Fears that Greece might default are pushing down the value of its sovereign debt this morning.

The yield (or interest rate) on its two-year Greek bonds has jumped to 23%, up from 21.6% last night. That's the highest since the bonds was issued in the middle of 2014.

9.37am GMT

My day started with a working breakfast with Prime Minister of #Ukraine @Yatsenyuk_AP pic.twitter.com/X3q00zJiqH

9.34am GMT

Greece isn't officially on the agenda for today's EUCO Summit, but it will obviously be on the minds of leaders.

One EU official has said the Greek bailout is the "elephant in the room", according to the AFP newswire.

9.25am GMT

Angela Merkel has warned that Greece's debt crisis will only be resolved if it sticks to its agreements and remains on its "tough path".

"I have invited the Greek Prime Minister Alexis Tsipras to Berlin on Monday and I'm looking forward to his visit. We will have time to talk to each other in detail and perhaps also to argue."

Laughter in #Bundestag when #Merkel said she's looking forward to debating with Greece's Prime Minister Alexis Tsipras when he visits Berlin

8.59am GMT

It really has been a dramatic 15 hours in the international markets, since the Federal Reserve's monthly meeting.

The dramatic selloff in the dollar is now unwinding this morning, as investors conclude that the reaction to the Fed's cautiousness was perhaps overdone.

Look what #Yellen did to the #dollar http://t.co/vmCpw1KJMV #BartChart #Fed pic.twitter.com/kZQDhxB8UO

#Euro back now to where we were before FOMC last night as senamigams around Greece trigger another sell-off. pic.twitter.com/3OUA6rK65w

everyone is very sweary this morning. And them that aren't swearing are just looking at charts and shaking their heads..

8.46am GMT

European Parliament President Martin Schulz has raised the stakes ahead of today's European Council Summit, warning that Greece desperately needs funds.

Time is short," Schulz told Deutschlandfunk radio just hours before European Union leaders discuss Greece's bailout at their summit. "In the short term, two to three billion (euros) are needed to keep to the existing obligations," he said.

Schulz said Greece had to make further payments by the end of the month, its banks needed money and its central bank's ability to supply funds was almost exhausted.

8.43am GMT

The row over Greek finance minister Yanis Varoufakis's infamous 'finger' gesture has taken another twist overnight; a German humorist has now claimed to have faked the footage.

Any apology in the offing @GuentherJauch65? For having used a doctored video to silence a conciliatory Greek voice? http://t.co/7SP6OcLIIv

#Varoufake explained: Varoufakis claims finger was faked - a satire faker said he faked it - but his claim that it's fake was faked. Follow?

8.31am GMT

The euro is sliding back towards its recent lows this morning, after soaring against the US dollar last night following the Federal Reserve's cautious performance.

The euro is plunging again after yesterday's surge against the dollar. http://t.co/qmqxEkefzV pic.twitter.com/qZx7hJTevs

8.25am GMT

The FTSE 100 has just hit a fresh record high this morning, as City traders begin the morning in an optimistic mood.

London's blue chip index is up 32 points in early trading at 6977, led by mining companies.

7.54am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

With tensions rising over Greece's bailout, European leaders are heading to Brussels for another summit dominated by Athens's financial problems.

"We are not going back on what we have promised.

We are not asking for special treatment but equal treatment."

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