Eurozone finance ministers agree to third Greek bailout - as it happened

Graeme Wearden (now) and Nick Fletcher

from on 2015-08-14 22:39 (#HBNF)

After months of arguments, Greece's third loan programme has finally been approved by eurozone ministers tonight.... meaning debt relief could follow this autumn

Eurogroup chief: a86bn bailout agreed tonight
First tranche should be paid next week
IMF: Greece needs substantial debt relief
Greece: Deal provides stability
The key points
Savers protected, but bondholders face bail-in

11.39pm BST

And finally, over to Ian Traynor in Brussels to sum up tonight's news:

Greece clinched a three-year bailout worth a86bn (60bn) after parliamentarians in Athens backed the deal, and Germany backed down on its opposition to the third rescue of the bankrupt country in five years.

A meeting of eurozone finance ministers in Brussels representing the country's main creditors agreed to launch the new bailout with a26bn being disbursed next week following six months of bitter recrimination that almost saw the country, under the leftwing government of Alexis Tsipras, becoming the first to exit the single currency.

11.22pm BST

Tonight's deal faces a trio of major obstacles - one political, one economic, and one financial.

The Wall Street Journal explains:

Large-scale defections from Syriza party lawmakers during a parliamentary vote on the agreement Friday morning indicate that Prime Minister Alexis Tsipas may soon call new elections.

That could once again delay the implementation of the austerity measures mandated by the deal as well as action by the other eurozone countries to lower Greece's debt load.

11.16pm BST

Greece an irreversible member of euro, says Juncker after Eurogroup nod http://t.co/F6GGec0tkh pic.twitter.com/SzSdPW9RdB

11.16pm BST

European Commission President Jean-Claude Juncker must be relieved that the threat of Greece leaving the eurozone on his watch has receded.

Here's his reaction to tonight's agreement.

The past six months have been difficult. They have tested the patience of policy-makers and they have tested the patience of our citizens even more. Together, we have looked into the abyss.

But today, I am glad to say that all sides have respected their commitments,"

10.51pm BST

More reaction to tonight's agreement:

#greece no phony victimhood from tsakalotos: 'in end, how good this deal is depends on how Gk society, state, economy, social actors respond

Shorter Lagarde: no deal without debt relief, redux.

Hollande says Eurogroup deal on Greece is proof EU is capable of going forward; an achievement for Greece which has made expected efforts

10.46pm BST

Tonight's deal doesn't mean the third Greek bailout is totally "in the bag". Some national parliaments need to give their approval - including Germany's Bundestag next week.

But short of a major shock, the a86bn bailout package is finally a done deal, after nearly seven months of wrangling, deadlock and drama.

debt sustainability can be achieved through a far-reaching and credible reform programme and additional debt related measures without nominal haircuts.

If necessary, the Eurogroup stands ready to consider, possible additional measures to ensure that Greece's gross financing needs remain at a sustainable level.

Main results of today's #Eurogroup meeting on #Greece http://t.co/cu8tLiq6Qd

10.05pm BST

The success of tonight's deal depends on Greece's willingness to embrace tough reforms, Tsakalotos added.

10.01pm BST

Greece's finance minister, Euclid Tsakalotos must be cream-crackered this evening.

He spent last night in the Athens parliament, as MPs argued over whether to approve the bailout programme. No sooner was that vote over than he was preparing for the eurogroup meeting, which began after lunch in Brussels.

"It takes Greece forward in the sense that the financial system should be much more stable from now onwards. There is a promise of recapitalisation of the banks, without any of the depositors having to bail in or anything to worry about."

9.53pm BST

If you've been following this crisis, you'll already know that Greece must implement sweeping economic changes in return for this third package of loans.

The broad scope of the plan was agreed a month ago, at the summit of eurozone leaders.

9.35pm BST

Like Dijsselbloem, Schaeuble plays down potential political instability in #Greece. Focuses on broad parliament majority, not SYRIZA rebels

9.35pm BST

Schiuble denies that the political instability in Greece could doom tonight's deal.

He points out that prime minister Alexis Tsipras has fought hard to get MPs to approve it:

#Schiuble: When asked the 'trust' question - says, did you not see how #Tsipras has fought in his own parliament for this prog. #Eurogroup

9.30pm BST

More Schaeuble: Now Greece is making serious effort to embark on a new course "Good day. Good result" #Greece pic.twitter.com/nucS7WyRSU

9.29pm BST

Even Schiuble, one of Greece's biggest critics, sounds optimistic tonight.

Germany's finance minister tells reporters that he's confident that eurozone ministers can agree a "common approach to Greek debt sustainability"in October, which would then bring the IMF on board.

#Schiuble: Always been the case that IMF decides on its own rules. If 1st review is satisfactory in Oct, then Lagarde will request IMF join

9.22pm BST

Wolfgang Schauble, Germany's finance minister, is briefing the press -- here's a livefeed.

9.19pm BST

Eurozone finance ministers are racing to brief the press, and give their verdict on the Greek bailout deal reached tonight.

France's Michel Sapin has hailed the deal, and applauded the determination shown by the Greek government to carry out reforms (after a shaky start).

France's Sapin: Greek government took responsibility after valuable time was wasted #Greece pic.twitter.com/8AQutvG3ZX

9.14pm BST

With delicious timing, IMF chief Christine Lagarde has just issued a statement welcoming the agreement between Greece and the rest of the eurozone.

But she has also warned that "significant" debt relief is needed before the IMF can join the bailout (as many countries, including Germany and Finland, demand).

Key passage from @Lagarde on #Greece deal: 'significant debt relief needed, well beyond what considered so far' pic.twitter.com/xuDWJ1BWNY

9.08pm BST

I'm hopeful that the IMF will come on board in October, Dijsselbloem says.

But he admits that this isn't guaranteed; it all depends on Greece's ability to implement the programme, and the eurozone's progress on debt sustainability.

9.06pm BST

Regling clarfying: 1st Installment a26bn _ a10bn for banks & a13bn more paid out immediately, remaining a3 in Sept, Oct #Greece

9.02pm BST

Dijsselbloem repeats that relations with the Athens government has improved in recent weeks.

Greece has been 'very strong, very organised', he says, in a clear dig at their former finance minister.

.@J_Dijsselbloem: Cooperation with the "changed Greek govt" has been hugely improved. Translation: Thank god they got rid of Varoufakis.

8.58pm BST

Our Europe editor, Ian Traynor, seeks details about how tonight's deal differs from the draft proposal drawn up this week.

Jeroen Dijsselbloem confirms that tonight's statement includes an new, explicit commitment that bank depositors won't be bailed-in to help pay the cost of rescuing Greece's banks.

#greece #eurogroup on bank bail-ins - 'we wanted to make sure there would be no unrest among depositors' - @J_Dijsselbloem

8.54pm BST

Onto questions.

Are the eurogroup concerned by the political instability in Greece, and the prospect of a confidence vote next week?

8.50pm BST

Eurozone authorities are aiming to sign off Greece's first loan tranche, worth a26bn, next Wednesday (19th August).

Then, a13bn will be handed over early on Thursday. That will cover repaying Greece's existing bridge loan (to meet July's funding needs) and its bond repayment due to the ECB on the 20th.

8.42pm BST

Greece's willingness to reform its pension system will be crucial to the IMF's decision on whether to take part in the bailout, Dijsselbloem adds.

8.41pm BST

What about the thorny question of the International Monetary Fund's involvement in the bailout?

Dijsselbloem says that it is essential that the IMF is involved. That could happen, he says, once the Fund is satisfied by the Greek reforms and the prospects of debt sustainability.

8.39pm BST

Eurozone ministers have agreed to consider taking "additional measures" to ensure Greece's debt sustainability, Eurogroup president Dijsselbloem says.

However, Athens will need to achieve a successful first review of the bailout programme first.

.@J_Dijsselbloem On debt sustainability, can be achieved thru a far reaching reform program and debt measures "without haircuts"

8.37pm BST

The a86bn bailout includes a a25bn buffer to recapitalise the Greek banking sector.

8.33pm BST

Tonight's deal also tackles issues in the Greek banking sector, Dijsselbloem says, to recapitalise lenders.

And he reveals that senior bondholders could be bailed-in to help pay for the plan, although depositors will be protected.

8.31pm BST

We have come to a positive conclusion tonight, says Jeroen Dijsselbloem at the start of the press conference.

We have reached a political deal, and solved the last issues, he tells reporters in Brussels.

#greece @J_Dijsselbloem thanks greek govt. been a while

8.28pm BST

Here's a livefeed of eurogroup president Jeroen Dijsselbloem announcing the result of tonight's meeting, starting any moment.....

8.22pm BST

Belgium's finance minister, Johan Van Overtveldt, has told Reuters that the eurogroup have agreed to implement the Greek bailout plan that was drawn up this week, but with some "additional measures".

8.10pm BST

Ian confirms that tonight's meeting has finished, so we should find out very soon what's been agreed.

#greece #eurogroup it's over #ohgoody

8.09pm BST

The newswires are reporting that the Eurogroup meeting on Greece has just ended......

Eurozone finance ministers approve new bailout for Greece; first payment will be a26B - DJ

7.52pm BST

It's a glamorous gig, covering the biggest financial crisis in generations.....

Summer Friday part ii: eurogroup pizza party, pepperoni edition pic.twitter.com/OHrbXYJphT

7.24pm BST

From Brussels, our Europe editor Ian Traynor sums up the situation tonight:

Greece is close to clinching a three-year bailout worth more than a85bn (60bn) after parliamentarians in Athens backed the deal and Germany sent conciliatory signals ahead of a crucial meeting of eurozone finance ministers.

Representatives of Greece's main European creditors were generally upbeat about finalising the bailout terms after the Greek prime minister, Alexis Tsipras, secured approval from MPs for a huge package of legislation on Friday morning. The vote committed the indebted country to radical economic and fiscal reforms needed to secure the rescue money.

Over the past week, Berlin has consistently argued against being "rushed" into a new bailout, preferring to award Greece a new bridging loan to pay off a debt payment of a3.2bn due to the European Central Bank next week. But the temporary loans scenario was barely mentioned by finance ministers as they arrived in Brussels, including the northern and east European eurozone members who have been reluctant to do a deal....

#greece #eurogroup lagarde reported to eurozone ministers by videophone. 'very positively', it is said

7.13pm BST

Here's a few more photos from inside the Eurogroup meeting:

6.45pm BST

Eurozone finance ministers are getting closer to a deal on the Greek bailout.

They've just taken a short break, and are now hammering out a statement. Officials are briefing that the eurogroup could finish in a little over two hours time, at 10pm (9pm BST or 11pm in Athens).

Eurogroup finance ministers back from a 30 minutes break to draft a statement text. Sandwiches arrived. Finished about 10pm +/-

Eurogroup on #Greece is now redrafting conclusions, and should wrap up around 10 pm

6.11pm BST

Greek prime minister Alexis Tsipras may try and reinvent himself to win any forthcoming election, says our correspondent Helena Smith.

#Greece heading for more parliamentary drama w confidence vote assured after 20th: debate/vote must take place 2 days after gov request

#Greece all eyes should now be on new force that will b created by #Syriza rebels who already have support of party's youth

In the name of #Greece's European destiny, #Tsipras may well try 2 reinvent h/self as leader of the centre left & emerge victorious

5.17pm BST

New Greek elections could come as early as next month, if prime minister Alexis Tsipras calls and loses a confidence vote next week, writes Jon Henley. But Tsipras may well win in any new ballot.

5.07pm BST

Here's more on what may be on the table:

#greece bailout first tranche. a26bn in play, say sources - 10bn for banks,7.2 for EFSM, 3.7 for ECB, 1.6 IMF. leaves a 3bn buffer

5.05pm BST

As the Eurogroup of finance minsters meet to discuss the third Greek bailout proposals, European markets ended the week on a downbeat note. Despite some measure of calm returning following the ructions caused by China devaluing its currency, investors remained nervous. Weaker than expected eurozone GDP data proved a drag on markets, although some positive US industrial production figures provided some support. The final scores showed:

4.47pm BST

Meanwhile here is more from the interview with European Central Bank member Benoi(R)t CAuri(C), in which he suggests the bank may allow Greek bonds to be accepted as collateral once the new bailout agreement is in place.

Will the Governing Council of the ECB immediately reapply the waiver - i.e. the exemption under which the bonds of a country with a poor credit rating are accepted as collateral if the country is in a programme - once Greece's third programme is agreed? That would be an enormous help to Greece.

The Governing Council has not yet discussed that.

4.27pm BST

Greek officials are saying the Euro Working Group went well and it recommended to the Eurogroup of finance ministers that the country receive a13bn immediately to cover its financing needs, with another a10bn to help support the banks.

Greek FinMin sources say EWG went well, #Greece to receive a13bln now (12.5 for debt, 0.5 for arrears) & a10bln soon after for bank recap

Greek FinMin sources add there will be efforts to secure soon more "significant" funding on top of a23bln to cover state arrears #Greece

4.23pm BST

European Central Bank member Benoi(R)t CAuri(C) has expressed optimism about the success of a third bailout deal for Greece.

In an interview with Birsen-Zeitung he said:

This year has seen a lot of trust destroyed, and reforms have been reversed. That has been a real setback. But Greece can build on what it has achieved under the first two programmes, and the new memorandum of understanding has everything it needs to give the Greek economy considerable support. I would like to stress two things in this regard. First, we have the right mix as regards fiscal measures. Ambitious medium-term budgetary objectives have been set, without the economy being strangled in the short term. Second, there is a strong focus on structural reforms. Looking back, one could say that if there had been more focus on structural measures - such as the reform and opening-up of markets, improved tax collection and the fight against interest groups - from the start, that would have reduced the burden that adjustment placed on the most vulnerable in society and speeded up Greece's recovery.

I am grateful for the good spirit and cooperation of the new Greek Finance Minister.

We believe that the recapitalisation of the Greek banks should take place as soon as possible. The banks' ability to grant credit is an important precondition for growth. However, first we need detailed information about the situation. For that reason, banking supervisors at the ECB have started a new asset quality review and stress test for Greece's four major banks. Those credit institutions were adequately capitalised , but they are now operating in an extremely difficult economic environment, and nonperforming loans are likely to increase in the next few years. It is quite clear, therefore, that the banks will require more capital. How much remains to be seen.

It is a matter for the Greek government. As long as there is uncertainty regarding the future of Greece's banks, the government in Athens should tread very carefully. I do not see scope for substantially relaxing Greece's capital controls until it is clear how and when the banks will be recapitalised.

We have to be careful here, as that can quickly become a self-fulfilling prophecy. The more you talk about it, the more people think nationalistically again and stop trusting Europe - and when people do not trust Europe, Europe becomes part of the problem instead of being part of the solution. Europe has always thrived on the diversity of its models, ideas and cultures. We need to prevent economic divergence from becoming so large that it threatens the survival of the euro area. But diversity as such is not a bad thing; it also promotes best practices and competition.

4.00pm BST

Away from the eurozone briefly, and US consumer confidence figures have come in weaker than expected.

The University of Michigan's preliminary consumer sentiment index came in at 92.9 for August, down from a final reading of 93.1 for July and forecasts of a rise to 93.5.

3.20pm BST

I didn't spot Greece's finance minister, Euclid Tsakalotos, arriving at the Eurogroup meeting -- but he is there now.

2.42pm BST

That's it. The Eurogroup meeting is now underway, with most ministers expressing confidence that the third Greek bailout will be signed off today.

Summary of doorsteps: Still some issues to iron out, but literally everyone (including Schiuble and Stubb) expects a deal today. #Greece

2.38pm BST

Finland's Alex Stubb has now arrived at the eurogroup meeting, and told reporters that he would be "very surprised" if a deal isn't reached to approve the Greek bailout deal today.

We should be honest and open that there is a bit of a Catch-22 to solve here.

The IMF will be involved only with debt relief, and we want the IMF to be involved but we don't want debt relief. So some kind of solution will have to be found.

2.16pm BST

Slovakia's Peter Kazimir adds that Greece must fulfil its commitments before it can get any debt relief:

#greece #agroup slovak kazimir says debt relief (no haircuts) can come as a reward for good greek behaviour, not as bailout precondition

2.15pm BST

Slovakia's finance minister, Peter Kazimir, tells reporters he agrees with Wolfgang Schiuble:

Kazimir: It's "crucial" that IMF is on board. #Greece

2.13pm BST

Germany's Wolfgang Schiuble just arrived, giving reporters a cheery smile and a few words in German.

#greece #agroup 'at the end of the day (today) we will have a result' - schaeuble

#greece #agroup schaeuble - imf involvement is a precondition for D. need to hear about IMF's commitment

There will....be heavy pressure from Germany to compromise and dilute the debt relief. It will be hard to get any bailout package through the German parliament but the task might be impossible if the IMF won't endorse it.

Nevertheless, the IMF should stick to its guns. Greece needs serious debt relief, not token measures. It is about time that lenders accepted the economic reality that piecemeal measures are pointless when debt ratios reach 200%.

1.47pm BST

Malta's Edward Scicluna is next to arrive -- he tells the press pack that he favours reprofiling Greece's debt (eg, extending payback dates) rather than a haircut on the face value.

And do you expect a short meeting, or a long one?

1.44pm BST

Next up, Pierre Gramegna of Luxembourg, who greets reporters in Brussels with a cheerful "good morning" (?!).

#greece #agroup lux's gramegna clearly a lateriser. arrives at 1430 with a 'good morning' greeting

Gramegna: I think the conditions are there to give the green light to 3rd bailout today. #Greece

1.41pm BST

Dijsselbloem then vanished into the building, swiftly followed by ECB president Mario Draghi (showing his usual skill at avoiding the press pack)

1.37pm BST

#greece #agroup @J_Dijsselbloem said v little in english, in dutch he singled out bank recap, privatisation fund, debt as main problems

1.32pm BST

Eurogroup president Jeroen Dijsselbloem has just arrived at today's extraordinary Eurogroup meeting.

Like France's Michel Sapin, Dijsselbloem is looking tanned and cheerful.

Hopefully at the end of the evening we will have a positive outcome.

Hopefully we can make sure that it is sustainable by them, and make further guarantees if necessary, so that the IMF can come on board in October, because that's very important to all of us.

#greece #agroup @J_Dijsselbloem 'imf involvement very important to all of us'

1.17pm BST

Finnish finance minister Alex Stubb has dropped a hint that today's Eurogroup meeting will go smoothly:

Beginning #Brussels meetings with #EPP colleagues. Then #Eurogroup. I sense an optimistic atmosphere in town. #AugustInBrussels

1.03pm BST

You can watch the eurozone finance ministers arriving for today's meeting here.

1.02pm BST

And we're off! The first ministerial car has arrived in Brussels, and a suntanned looking French finance minister has got out.

Sapin: We need to respect our timeline. Re-profiling of Greek debt will be discussed in the autumn. #Greece

12.42pm BST

Jeroen Dijsselbloem will speak to the Brussels press in an hour's time, before the eurogroup meeting gets underway.

Doorstep extraordinary #Eurogroup around 2:30pm #Greece

12.23pm BST

This morning's weak eurozone growth figures have pushed stock markets into the red today.

The main indices have all lost ground, as investors show disappointment at the slowdown in Germany and France.

A swathe of disappointing GDP figures from across the Eurozone led to a weaker than expected region-wide number this Friday morning. This merely served to compound the current lack of appetite for risk and caused the DAX and CAC to lose their tentative gains in the process.

That could change this afternoon, however, dependent on how swift, and successful, the Eurogroup meeting is. The finance ministers are all on their way to Brussels, so sooner rather than later news should start leaking out about the sentiment of the group.

Big news today is the disappointment across European GDPs http://t.co/xXe9Z7iKkK pic.twitter.com/a2kU2Ws6FM

11.54am BST

Breaking away from the eurozone briefly, the British financial trader accused of helping trigger a multibillion-dollar US stock market crash has, finally, been granted bail.

Westminster magistrates court has ruled that Navinder Singh Sarao should be released from custody, almost four months after being arrested and accused of sparking market turmoil in 2010.

Navinder Singh Sarao, accused of causing US flash crash, granted bail in extradition hearing at Westminster magistrates court.

Sarao, who is from Hounslow, must remain inside M25 until full extradition hearing scheduled for 24 Sept.

11.50am BST

Dutch finance minister Jeroen Dijsselbloem has welcomed the Greek parliament's vote today.

11.03am BST

Analysts at Capital Economics fear that the eurozone economy will continue to slow through 2015, and only grow by 1% during the year.

They say:

"Looking ahead, business surveys suggest that the euro zone economy will continue to expand, led by strong growth in Spain and a solid German economy. But they offer little hope that the recovery will gain pace."

"Indeed, we think it is more likely that growth in the region as a whole will slow further in the second half of the year."

0.3% rise in #euro-zone GDP in Q2 in line with our 2015 forecast of 1% vs consensus of 1.5%. We also expect 1% in 2016 vs consensus of 1.8%.

10.24am BST

Recession in #Finland continues. Only EZ coutry with shrinking GDP in 2Q. Won't help support for 3rd package for #Greece

10.22am BST

Finland was the worst-performing member of the eurozone in the last quarter; the only country to suffer shrinking GDP.

But it wasn't the only poor performer, with France stagnating, Austria and the Netherlands growing just 0.1%, and Italy at +0.2%.

10.05am BST

The eurozone economy grew by 0.3% in the second quarter of 2015, weaker than the 0.4% expected.

That's not a surprise, after growth figures from Germany, France, Italy and the Netherlands were all weaker than forecast (as covered earlier in today's blog).

9.43am BST

Readers who missed the all-night drama in the Greek parliament in favour of a good night's sleep can get a flavour from this video:

9.37am BST

Portugal has outperformed France and Italy, and matched Germany, with growth of 0.4% in the last three months.

Portugal 2Q GDP +0.4% on quarter, +1.5% on year. Same rises as previous quarter.

9.21am BST

Today's vote was the third time that Greek MPs have been asked to approve the third bailout, and each time Alexis Tsipras's majority has been whittled away.

Damian Mac Con Uladh of the Irish Times has been maintaining a spreadsheet showing how the rebellion has gathered pace.

#Greece: Which #Syriza MPs voted No or abstained: spreadsheet showing last three votes. http://t.co/yBtnCByJZw #Vouli pic.twitter.com/hTWoMk6u5l

9.15am BST

Eurozone finance ministers will soon be heading to Brussels for a eurogroup meeting, to sign off the a85bn Greek bailout deal.

Finland's Alex Stubb is already on his way:

Wheels up for Brussels. #Eurogroup meeting. Beautiful August morning in #Espoo. #esm #greece pic.twitter.com/VpkIWzOtKL

9.06am BST

Italy has just provided further confirmation that the eurozone economy has underperformed in the last quarter.

9.00am BST

Back in Athens, Greek MPs are staggering into the daylight after their marathon session.

It was touch-and-go at one stage, though. After the result was declared, speaker Zoe Konstantopoulou announced that the vote wasn't legally valid and should be rerun within 24 hours.

It's over, MPs leaving, Konstantopoulou didn't get her wish of making everyone stay on #vouli

8.54am BST

The Netherlands economy has also missed expectations.

Dutch GDP grew by just 0.1% in the last quarter, compared to estimates of 0.3%.

#Netherlands | Q2 PRELIMINARY GDP Q/Q: 0.1% V 0.3%E; Y/Y: 1.6% V 2.2%E pic.twitter.com/6oJee3knAi

8.48am BST

The prospect of snap Greek elections this autumn will not please German MPs, who must give their approval to the deal next week:

8.34am BST

If you're just tuning in, here's Jon Henley's latest news story on the bailout vote:

8.28am BST

Skai TV are reporting that Alexis Tsipras will call a vote of confidence sometime after August 20, which would lead to snap elections if he loses.

And that's because the Greek PM has suffered a significant rebellion among his own MPs at today's vote.

Looks like confidence vote will take place after August 20, possibly leading to snap elections if #Tsipras doesn't reach necessary majority

#Greece: 3rd bailout passes; gov't MPs who voted for are 118, below min of 120 required to survive confidence vote. May lead to snap polls.

8.22am BST

Here's the voting details:

Voting looks to have finished in #Greece parliament. 3rd Bailout approved by 222 votes to 64 with 11 abstentions. pic.twitter.com/si8un4W4Tz

8.04am BST

Crisis-watcher Yannis Koutsomitis reckons the Greek government will just retain its majority in today's vote, but it will be close:

Tsipras survives with up to 42 rebel votes or abstentions. 43 is the lethal number. #Greece

8.00am BST

It's official: a majority of Greek MPs have voted to back the third aid programme.

Bailout bill passes #Greece pic.twitter.com/6e02qkxtD1

7.58am BST

it's a given that the bailout deal will pass, the issue is for government to retain at least 120 votes from syriza MPs. #vouli

7.57am BST

Halfway through the vote, and 105 Greek MPs have now voted Yes, with 32 voting No and five abstaining.

7.50am BST

The Greek parliament is on track to approve the third bailout deal, as the main opposition parties are supporting it:

So far voting in #Greece parliament shows 68 Yes 21 No and 2 abstentions (via Skai TV)

7.39am BST

Yanis Varoufakis has stuck to his word and voted against accepting the third bailout plan. Other Syriza rebels are also voting 'No'.

7.37am BST

Finally, Greek MPs are voting on whether to accept the third bailout.

Open roll-call vote underway in #Greece's parliament. #Vouli. pic.twitter.com/UfNW2HeXsV

7.36am BST

My colleague in Athens, Jon Henley, has watched the Greek bailout debate - and reports on the serious disunity on display:

The Athens parliament did not start debating the 400-page taxt of the draft bailout plan until nearly 4am after parliamentary speaker Zoe Konstantopoulou, a Syriza hardliner, ignored Tsipras's request to speed up proceedings and instead raised a lengthy series of procedural questions and objections.

In angry exchanges, the conservative opposition rounded on the government, warning it not to take its support for granted. "If you want to provoke us - and for us to vote for it - you can't have it both ways," New Democracy leader Vangelis Meimarakis told finance minister Euclid Tsakalotos.

7.31am BST

There is no end to the economic gloom in Finland, where GDP has shrunk again.

Finland's gross domestic product (GDP) contracted 0.4% in the second quarter from the previous quarter, preliminary data from the statistics office showed on Friday. GDP fell 0.1% quarterly in the first quarter.

Second-quarter GDP was 1.0% lower than the same period a year earlier.

7.24am BST

More drama in the Athens parliament, as the all-night debate continues.

Former finance minister Yanis Varoufakis has just intervened, telling the chamber that he cannot vote for the bailout deal. But he still supports the government, so suggests that he should resign as an MP to allow Tsipras to appoint a successor.

Varoufakis says he cannot vote for the deal #Greece pic.twitter.com/5LcqRTpPft

Varoufakis has offered to resign as MP to help gov't remain above 120 seats, which would be minimum needed in confidence vote #Greece

7.13am BST

Germany's latest growth figures are also weaker than expected.

#Germany misses after #France on Eurozone GDP day. German 2Q GDP Adj +0.4% undershooting forecast of +0.5% On Qtr. pic.twitter.com/pweXuGbvZ4

7.02am BST

Back in Athens, Tsipras has warned MPs that they must give their approval to the bailout plan today - so Greece can get the money to repay the European Central Bank next week.

#Greek PM tells MPs tt bridging loan (2 cover looming ECB debt) would plunge the country back into crisis

6.57am BST

France has got Eurozone GDP Day off to a bad start, by posting no growth in the last three months.

France's economic output was unchanged in the April-June quarter, stats body INSEE just reported. That's weaker than the 0.2% which analysts had expected.

Good morning from #Italy on Eurozone GDP day. Data will highlight that end of stagnation not in sight. France misses. pic.twitter.com/DmGQEfdq3a

6.50am BST

Alexis Tsipras is telling bleary-eyed Greek MPs that he doesn't regret the deal he agreed to in Brussels last month.

"We took a painful decision of responsibility," #Greek PM tells parliament after all-nite debate ahead of vote on latest bailout deal

Going the drachma route would have been tantamount to committing suicide, #Greek PM Alexis Tsipras tells parliament ahead of vote on deal

Tsipras: Denouncing the debt is not an alternative solution #Greece pic.twitter.com/Jjm49PJYma

6.46am BST

Good morning.

Greece's bailout deal is heading down to the wire today, with Eurozone finance ministers due to sign off the plan today.

Addressing #greek parliament this am #Syriza rebel #Lafazanis says he doesn't know whether he "feels pity or sorrow" for the government

#Greek parliamentary now witnessing extraordinary tirade against PM by his once close friend & top #Syriza cadre Zoe Konstantopoulou

tsipras: the first cycle of a painful process closes today. #vouli

Source	RSS or Atom Feed
Feed Location	http://feeds.theguardian.com/theguardian/business/economics/rss
Feed Title
Feed Link	http://feeds.theguardian.com/