"Greece Is Rescued", Economy Minister Tells BBC

Tyler Durden's picture

While we have seen countless such reports in recent weeks and months, and take each and every one with a mine of salt, the reason ES algos just took out overnight highs was due to a BBC interview - which will be broadcast "shortly" - in which BBC economic editor Robert Peston was told by the Greek economic minister George Stathakis that "he believes Greece's new proposals to balance the government's books have broken the deadlock with its creditors."

He said he expects eurozone government heads to issue a communique later today that will say there is now a basis for a formal agreement with Athens to complete the current bailout programme and release €7.2bn of vital funds.

Peston also reports that according to the Greek minister, "technical work would need to be done in the coming days to formalise the agreement. But he was hopeful that Greece would be able to make its €1.5bn payment to the IMF on its due date of June 30 - and therefore avoid a devastating default."

According to the latest and greatest proposal to raise money, there will be:

  1. A new tax on businesses
  2. A new tax on the wealthy
  3. Some increases in the VAT rate on selected items.

Most importantly he said that his Syriza government, led by Alexis Tsipras, had avoided crossing its red lines.

Which is curious considering the IMF has repeatedly said no deal can be struck without a haircut of Greek pensions and wages, which comprise 75% of primary government spending according to Olivier Blanchard.

In any event, that's where the Greek proposal is right now: "there would be no further reductions in pensions or public-sector wages. And there would be no increase in VAT on electricity."

In other words, if this indeed holds and the Troika agrees, or perhaps Dvoika without the IMF, Greece can indeed claim victory.

More from the BBC:

He also said that the government had agreed with the IMF and eurozone governments that the targeted budget surplus would be 1% of GDP or national income this year, 2% next year and 3% the year after.


There will be no agreement with creditors to cut Greece's massive burden of debt, despite Syriza's earlier insistence on this. But Mr Stathakis told me the government heads' communique would say that debt relief will be on the agenda for negotiation in coming months.


He anticipates some criticism for the agreement from the left of his party. But believes his government can ride this out.


Crucially he believes Mr Tsipras has done enough to prevent the European Central Bank ending its emergency support for the Greek banking system.


Mr Stathakis also said that the government will be able to re-introduce collective bargaining by trade unions, which is of vital importance to his party.

How difficult would it be to get a party agreement on the latest proposal?

Will the Troika agree to this proposal which refutes earlier WSJ reports of a modest trim to pensions, remains to be seen. If there is one thing we have learned in the past 5 years it is that the Greek version of reality differs, often times vastly, from that of the Eurogroup but one thing everyone can agree on: leak, spread and distribute whatever news is sufficient and necessary to spike stocks to fresh highs; after all subsequent denials always fail to push them back lower.

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Haus-Targaryen's picture

Oh fuck me this shit again? 

Pinto Currency's picture



Poof! Money-from-nothing fairy dust solves the problem.

The Greeks had a chance and have voted to stay with a collapsing monetary system.

eclectic syncretist's picture

The troika talks a good game but at the end of the day they need the bailouts a lot more than Greece, Portugal, Spain, ect.

tc06rtw's picture

 … they don’t even
  talk a good game !


  [I’ll sit up & take notice when a Greek Economy Minster makes an announcement wearing a necktie !]


SickDollar's picture

Here we go again the same game over and over and over

tarsubil's picture

Can we have a moratorium on Greek articles?

Billy the Poet's picture

Hello, Danny. Come and play with us. Come and play with us, Danny. Forever... and ever... and ever.

Wolferl's picture

Throw those pathetic Greek deadbeats out of Europe already.

MonetaryApostate's picture

I can just see them collapsing the Euro leaving all of those bank runners left "holding the bag"  (Of cash, e.g. trash)..

KnuckleDragger-X's picture

Crap, how many times is this? I've lost count......

Bush Baby's picture

Did anyone really expect a different outcome?

Handful of Dust's picture

I feel better now. No Banker will be left out in the cold.

Kotzbomber747's picture

See? All that panic and scaremongering for nothing.

Eyeroller's picture

NO! Not for nothing!

The panic and scaremongering were intentional so the 'markets' could soar on the 'surprise' announcement of another deal.

Bokkenrijder's picture

Exactly eyeroller, and didn't ZH do their part with all the scaremongering, and stirring up all the panic short selling?

If you bought puts on Friday assuming a "Lehman weekend" or a "capital control Monday," wouldn't you feel quite like one of Tom Stolper's Muppets today?

Latina Lover's picture

Even if Greece gets bailed out again, they will never repay their debt.  The end game is clear: sovereign default, capital controls, bail in of banking deposits.  Rinse, wash, repeat for Italy, Spain, Portugal, France etc.

asteroids's picture

It was impossible to repay after the second bailout. Any more makes things worse down the road. This is basic math and physics. So yah, go ahead, bail out Greece and the rest of the PIIGS again and add on another QE and ZIRP, gold will start looking REAL interesting.

NoDecaf's picture

Que the Greek can-can girls.

Son of Loki's picture

Why even consider repaying anything these days, whether it's a student loan or a mortgage or gubmint debt when you know there's a better then 90% chance OPM will bail you out.

hawkeye39's picture

No. What you said would happen if Greece WOULD HAVE split from Europe.

But instead, Europe will now take the burden upon itself and will pay Greece's debts.


El Oregonian's picture


Bush Baby's picture

It's the truck you don't see coming that runs you over.

The Greece truck has been bearing down on the EU at 2 MPH for years.. no surprises here

robertocarlos's picture

Watched a movie about an accountant forced by the mafia to be their bookkeeper. When the time came to end his employment he was run over by a garbage truck. The mafia listed that expense under "vacation".

greenskeeper carl's picture

"Don't worry everyone, the can has been kicked!! you are officially safe from default (for another few months)"


All time highs here we come. Dow 20000! Yes we can, FOARWARD!


I can't tell who the creditor and who the debtor is anymore.....and apparently it no longer matters. 

XAU XAG's picture

Many sides to this GREEK problem....................untill the other sides confirm.............all bets are off!

BLOTTO's picture

Greece is 'rescued' as in the Rothschild Empire OWNS them - then yes, they are 'rescued.'


They got OWNED.

BLOTTO's picture

DP (glitch in the matrix).


Anyway yes - Greece got owned, err, rescued.          

fromthinair's picture
fromthinair (not verified) Latina Lover Jun 22, 2015 9:31 AM

Do not worry, I will assist zerohedge by explaning the math in "The Plan B" (In the coming days and weeks). Looks like no one has gotten that math yet! I am not blaming Ms. Merkel. It's not her fault either.


Wile-E-Coyote's picture

The Greeks are trying to stem capital outflows. This is BS.

slaughterer's picture

All clear for another all time high on ES.  Hope nobody went short last Friday on the bearish visions of a Greek "Lehman weekend 2.0" "contagion is coming" "systematic breakdown" from zero edge.

Soul Glow's picture

So Greece is fine?!  Yeah right.  Printing fiat currency to hold up the global debt bubble is idiotic at best.  The evil that is usary will not last much longer.  Fiat currency is an illusion, money is real.

Buy silver

stewie's picture

I do not wish to sound patronizing but your statement about fiat currencies not lasting much longer is naive and totally wrong.  Quite the opposite, you will never see non-fiat currencies again.  There is no turning back now, the power grab has gone too far now.  Baring a full-blown revolution, we're all stuck with it and the propaganda is still way too effective for that to happen.  Heck the Greeks can't even see the opportunity ofered by Grexit!

Soul Glow's picture

Fiat will never last.  Krugman ain't that smart.

Renewable Life's picture

What's NOT surprising is this Kabuki Theatre just completed ANOTHER act in this Ponzi scheme, economic charade, with Governments!!!!

What IS starting to become interesting, is just how many of the oligarch class of non bankers, are starting to go public with calling this what it is!! Their obviously getting very scared about what they are seeing, and they know it will be the bankers and politicians against the rest of us, in the end!!

Facism and Socialism always ends with the complete consumption and destruction of the entitled and productive class, that mostly "stood by" and allowed them to gain power in the first place, out of greed and ignorance!! It appears to me, we are entering the "awakening phase" of those elites!!

What remains to be seen is, as so many times in history, is this awakening much too late!!!

stewie's picture

Sheeples will revolt when and only when the feeders are empty.  So it's not too late, it's inevitable.  Information or lack thereof is not the issue, human nature is.

ZH Snob's picture

they can forestall the inevitable if they want.  politicians have never been known to swallow the bitter pill.  the greeks appear to have gotten the better of the deal, while allowing troika to save face.  it is only a better deal because the austere aspect is not as severe.  but they, of course, have still sold out to the invaders.

everyone wins and everyone loses, like usual.

Puncher75's picture

Sheeeeew!!!!! And here I thought there was a Greek "problem". Glad to see it's all worked out. Nothing to see here........move along!!!

XAU XAG's picture

Rescued....................as in plucked from the MED sea by the coast guard.....................good luck



With your new found freedom in Europe!.........................Just need to get those papers sorted 

Soul Glow's picture

So Greece caved.  

I am Socrates' lack of surprise.

ANestIOS's picture

has it? how exactly? - lets see how the "creditors" will "manage" the press and who'll fall for it

Soul Glow's picture

Accepting the IMF to continue to tax them is like inviting a vampire into a house.  

Why does Greece need the loan in the first place?  Because the system of debt is in [place to control from the top down.

What is the IMF?  It is a criminal syndicate that was put in place by the bankers to tax controls to keep them from getting rich.  First it was to tax 3rd World Nation-States to keep them broke.  Now it is to tax 1st WOrld Nation-States to keep them from rebelling.

Fuck the IMF!

101 years and counting's picture

and, since stocks never sold any of greek default chances, they should soar on another "bailout".  afterall, US consumers can finally open their wallets (creating huge profits for corps) again now that Greece is fixed for 3 more months.  whew!!!