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Eurogroup Fails To Reach Deal, Gives Greece 24 Hours To Accept Draconian Terms

Tyler Durden's picture




 

When earlier today we revealed the terms of the "leaked" Eurogroup statement, which as we also reported would fail to reach a deal for a Greek Bailout #3, we said "Germany and 5 other "northern" states want Greece out, but they generously offer Greece the opportunity to push the "Grexit" button itself (especially since it is only "temporary"). Unless, of course, Greece is willing to cede all of its sovereignty to Germany in which case it can generously stay."

That's pretty much what just happened when after a day-long meeting of the Eurogroup, the European FinMins were unable to reach a conclusion on the third Greek bailout and instead once again punted the revised term sheet, this time with absolutely draconian terms, back to Tsipras, and told him he has until tomorrow to agree to the terms, and until Wednesday to pass them into law, for talks to even begin!

  • SCHELLING: GREECE MUST DECIDE BY MONDAY IF IT ACCEPTS STATEMENT
  • STUBB SAYS GREEK LAWS MUST BE PUSHED THROUGH BY JULY 15
  • STUBB SAYS GREECE MUST PASS WHOLE PACKAGE TO START AID TALKS”

More details from Bloomberg: "The decisive point is that Greece must decide as of tomorrow whether it accepts this statement,” Austrian Finance Minister Hans Joerg Schelling says. "When all these conditions are fulfilled, a further program will be negotiated. Not before."

As for Finnish Finance Minister Alexander Stubb, he said that the Greek parliament has to approve whole package before bailout talks can start. "We made a lot of progress and were able to draft I think a very ambitous proposal and report for the heads of state and government."

"It’s a document that has far-reaching conditionality on three accounts” -- laws by July 15, prior actions on labor reforms, VAT and taxes, four bullet points that are quite far reaching on privatization and other things.

 

“If there is to be an opening of ESM negotiations, all of these conditions have to be met and approved by both the Greek government and the parliament."

It is unclear just how the Greek temporary exit language, which was included in the final deal, will figure in the Greek negotiations.

As for the European summit, which is very much moot in the absense of a deal , and which is starting now, here is what will be discussed today via Maltese Prime Minister Joseph Muscat: "We were told that today’s summit was to discuss Plan B should no agreement be reached."

"This meeting, from what I can understand we are going to discuss all options"  Talks on Greek situation will "see what could be done so Greece may be kept in the euro.... "But not at any cost. What was sufficient two weeks ago is no more as things have deteriorated."

In short as we said earlier:

It is also worth reminding readers, that Greek banks, which have a few hundred million euros left, will run out of cash in the next 24-48 hours, which probably means that any deal delay at this point is simply a ploy to accelerate the involuntary Greek exit as a result of the country having to adopt its own currency, whether parallel, serial, Drachma, Renminbi, or some other kind.

 

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Sun, 07/12/2015 - 11:36 | 6302285 geno-econ
geno-econ's picture

Greece is a nation with a country, tradition and religion but no economy, banking system, currency or  patron to help avert the inevitable hardship facing Greece.  Perhaps Russia as a lansman can help,  but not save Greece.  Unfortunatly Greece had the potential for developing their petroleum/gas /chemicals industry(largest export followed by tourism) but it is now too late.  Case closed---next case, Portugal, Spain, Italy.  On the bright side, Ukraine may be willing to join the EU and NATO.  LOL

Sun, 07/12/2015 - 11:39 | 6302294 Berspankme
Berspankme's picture

Ukraine would make Greece look positively healthy

Sun, 07/12/2015 - 11:48 | 6302321 Raul44
Raul44's picture

Speaking of Ukraine, funny how news flow about that conflict almost ceased isnt it?

Sun, 07/12/2015 - 12:05 | 6302389 laser
laser's picture

mh17

Sun, 07/12/2015 - 12:57 | 6302286 headhunt
headhunt's picture
"Eurogroup Fails To Reach Deal, Gives Greece 24 Hours To Accept Draconian Terms"

translation: pay back, or at least make the appearance of attempting to pay back, what you have borrowed.

How unreasonable.

 

Don't forget, this money was borrowed from other countries taxpayers.

Sun, 07/12/2015 - 14:19 | 6302895 robertocarlos
robertocarlos's picture

That's OK. The other countries will just write it off.  It should be tax deductable.

Sun, 07/12/2015 - 11:41 | 6302299 smacker
smacker's picture

All that Greek pride that Tsipras blathered on about in his grand speeches in Parliament, TV and elsewhere is now being flushed down the pan ...by HIM.

He's made some serious errors in his negotiations by assuming he's dealing with reasonable/rationale people. He is not. Dieselboom and the rest of them are low-life political slimeball scum.

OR is it that he has been told in no uncertain terms that if he fails to get on his knees and agree with whatever the Troika/EU criminals demand, he will meet with a nasty fatal accident, followed by another "color revolution" because the powers that be in the shadows (read Washington) will not permit Greece to pivot towards Russia, which is what would likely happen if Greece left the EZ/EU and defaulted.

Sun, 07/12/2015 - 12:22 | 6302446 piratepiet2
piratepiet2's picture

 " OR is it that he has been told in no uncertain terms that if he fails to get on his knees and agree with whatever the Troika/EU criminals demand, he will meet with a nasty fatal accident, followed by another "color revolution" because the powers that be in the shadows (read Washington) will not permit Greece to pivot towards Russia, which is what would likely happen if Greece left the EZ/EU and defaulted."

You forgot the question mark. 

Besides, US and EU's interests are not aligned here imho.  US possibly wants this shitshow to go on as long as possible.  I think US does not want Greece orderly within a mighty EU. 

And I have to say, as a European, I am starting to lose confidence that our leaders have what it takes.

Sun, 07/12/2015 - 13:31 | 6302681 smacker
smacker's picture

The media has reported that Washington has urged the Germans/Troika to accomodate Greece a little more because its debts are known to be unsustainable and if a solution could be found, it would avoid Washington having to take Tsipras out.

That may be where the two major groups are not quite aligned, as you say. The EuroFinMin crowd lead by Dieselboom are out for Greek blood.

Preventing Greece from pivoting towards Russia must surely be top of Washington's priorities because of the NATO issue. That is where the death threat comes in.

Sun, 07/12/2015 - 14:28 | 6302942 piratepiet2
piratepiet2's picture

 

It is seems to me that in US perception Germany and the EU are much more of a threat to its hegemony than Russia is.  This US-Russia thing is in part smoke and mirrors.   

But I am sure you will disagree, so let's leave it at this.  

Sun, 07/12/2015 - 11:42 | 6302301 yogibear
yogibear's picture

Get on your knees and beg Greece!

- The Eurocrat Banksters

Sun, 07/12/2015 - 11:45 | 6302311 Raul44
Raul44's picture

"Eurogroup statement summary: "We offer Greece the chance to push the Grexit button on its own"" >> I always love ZH satire lol ;)))

That said, why another 24h? They already discussed this et. infinity. If they really had the balls they would do it by now. So I say dont hold your breath. I will not believe them even if they officially announce grexit, only when it actually happen. After all, eur/usd still have a plenty of pips to drop so that could be a good "scare".

Sun, 07/12/2015 - 11:45 | 6302315 homebody
homebody's picture

This will never end - it should be about productivity not paper.

Sun, 07/12/2015 - 11:47 | 6302318 bluez
bluez's picture

 

If I was Greece...

Greece has a population of less than 11,000,000 people, so in that way it's only slightly bigger than New York City. They have very nice climate, and are not going Dust Bowl like California. Well I just read that "European Union law" places strict limits on what food they can grow. Imagine that! So now that the rest of Europe will offer them nothing, why should they continue to stupidly obey the European Court of Justice [sic] and its so-called European Union law? They could tell the rest of Europe to place its "laws" where the sun don't shine. They wouldn't even have to leave the EU -- they could simply ignore it.

So here's the plan: They grow whatever they want. Their survival is being threatened, so why not become professional survivalists? Notice that half the Internet is supported by the sale of survivalist kit? Notice that lots of people are planting tomatoes, potatoes, beans, etc. in flower gardens. They are rather ugly, and when the poop hits the windmills, who will want to have ugly flower gardens? So the Greeks are perfectly positioned (literally) to breed pretty looking tomatoes, potatoes, beans, etc. Nobody could do it better. They could make a huge amount of (possibly "black market" -- they have lots of little mini-ports) loot pioneering congenial agriculture. And in general, they could corner the survivalist market. They can get around sanctions with bitcoin, or other schemes like that.

They could invent and produce survival kit just like Cuba produced an army of medical doctors.

Sun, 07/12/2015 - 21:32 | 6304427 mkkby
mkkby's picture

There are all kinds of things they could do to say fuck the EU, and make plenty of cash.  They could kick out the rothschild central bank and become another tax haven.  They could lease their ports and islands to who ever wants to ship anything they want, in complete privacy.  They could set a very low corporate income tax like ireland did, and attract all kinds of company headquarters and hedge funds.

Sun, 07/12/2015 - 11:49 | 6302326 Really20
Really20's picture

What the hell do labor "reforms" (in other words, treating workers' groups as collectives but enterprises as "individualistic capitalistic entities" even though they are GROUPS of investors) have to do with deficits and debt at all? Sounds like another cynical banker ploy to impoverish and prostrate the people of Greece.

These vultures should not be listened to unless Tspiras wants Golden Dawn's vote share to go through the roof.

Sun, 07/12/2015 - 11:51 | 6302329 NubianSundance
NubianSundance's picture

Nearby to Greece lies the very wealthy Vatican with their bullion purloined through the centuries, and not one cent of help from the Pope to the Greek people.

Sun, 07/12/2015 - 13:27 | 6302657 Faeriedust
Faeriedust's picture

That's the Great Schism between Orthodox and Roman Churches.  Considering what happened the LAST time the Vatican tried to help them (Sack of Constantinople, anyone?), I think that if they tried, the Greeks would line the borders with tanks.

Sun, 07/12/2015 - 17:14 | 6303514 greydogg
greydogg's picture

The Greeks don't even have to go as far as Rome for help ...

[...] the (Greek Orthodox) church was worth €700m in 2008. Manos, a former finance minister, reckons the figure is at least €1bn. The €2.5m in tax paid is slight in comparison to these unconfirmed figures. But this is only part of what the church owns [...]

From The Guardian, 2011 @ http://www.theguardian.com/world/2011/oct/04/greece-orthodox-church-econ...

Sun, 07/12/2015 - 12:08 | 6302343 Dogspurt
Dogspurt's picture

It's well past time that the Greeks called the EU's bluff by leaving the euro, seceeding from the EU, defaulting on the debts and reintroducing the Drachma. If the turncoats in Syriza don't have the cahones to do so, I'm sure there are many people who would be only too happy to hang them from the nearest lamp posts.

Sun, 07/12/2015 - 11:57 | 6302355 Chuck Knoblauch
Chuck Knoblauch's picture

Greece is dealing with Nephilim.

Get away from the devil.

Sun, 07/12/2015 - 11:57 | 6302356 alfred b.
alfred b.'s picture

 

    Circular firing squad for the Troika!!

    Silly MSM wondering why this is important for the usa....really?  It's cuz they're in big time w/euro banks, and these euro banks need the Greek debt showing up as an 'asset' on their books to stay afloat....not to mention some 44 trillion of derivaties on that Greek debt itself....gonna be the old 'catch 22'!

 

Sun, 07/12/2015 - 11:59 | 6302363 cinderalle
cinderalle's picture

i think Greece is being pushed to default, the only problem is the Greek prime minister is not getting the message

Sun, 07/12/2015 - 13:34 | 6302365 Kropotkin2
Kropotkin2's picture

Look at the front page of the "Bild"- paper last Friday.   

No surprise Merkel went for the kill. She would have been finished herself if she didn't.

http://www.tagesspiegel.de/medien/merkel-mit-pickelhaube-die-bild-eisern...

 


Sun, 07/12/2015 - 12:01 | 6302374 aleph0
aleph0's picture

So ISDA will say there was NO DEFAULT on those CDSs ..... only a TEMPORARY one.

Effing joke.

 

Sun, 07/12/2015 - 12:07 | 6302393 Jstanley011
Jstanley011's picture

The reason Merkle and the ECB are playing hardball this go 'round, is because previously banks held all the bogus Greek paper. Now it's the backers of the EU bailout fund, a.k.a. the block's taxpayers, who hold the lion's share. If you're productive, bend over, spread your cheeks, and relax your sphincters. Because, ready or not, here it comes again.

Sun, 07/12/2015 - 12:13 | 6302411 Dogspurt
Dogspurt's picture

Exactly so. The Greeks had their finger on the trigger but didn't pull it.

If you owe £1,000,000 to the bank you're in trouble: If the bank is owed £100,000,000,000,000 they're in trouble. But if they manage to socialise the debt to the taxpayers we're all screwed!

Sun, 07/12/2015 - 13:23 | 6302642 Faeriedust
Faeriedust's picture

Frankly, I still don't understand why.  Since they now own all of Greece's debt, forcing Greece out of the Union assures that the Greeks will have no reason to pay anything, ever.  It's a choice between getting some of your money back, or none of it, and the Germans are choosing NONE, for all of the EU nations.

As Varoufakis tried to explain to them, this is really, really STUUUPID.

 

Sun, 07/12/2015 - 12:07 | 6302397 SpasticGramps
SpasticGramps's picture

Die already.

Sun, 07/12/2015 - 12:16 | 6302420 dizzyfingers
dizzyfingers's picture

"When the freedom they wished for most was the freedom from responsibility, then Athens ceased to be free, and never was free again."

http://www.perfecteconomy.com/

Sun, 07/12/2015 - 12:17 | 6302422 B2u
B2u's picture

The choice is to die by firing squad, hanging, guillotine or poison.

Sun, 07/12/2015 - 12:34 | 6302480 RaceToTheBottom
RaceToTheBottom's picture

Everyone that wants to be a country, should become a country.  

Every country should print up their own money, in amounts that they decide on.

The marketplace, and GS, will decide the value of each currency.

It's for the children....

Sun, 07/12/2015 - 12:36 | 6302487 Rev Kuhlaid
Rev Kuhlaid's picture

Greece finally flush€$ the stinking €urodollah fiat and the Ponzi shitter of the Wall St shamans in the Potmkin Village of rigged "market capitalism" of the Anglozionazi Empire of Shit collaps€$ in a tsunami of Goldman Suck$ derivative filth to make Fukushima look like a pleasant day at the beach.

 

Thank you Greece.

Sun, 07/12/2015 - 13:04 | 6302583 cherry picker
cherry picker's picture

i hear Germany and its allies are thinking about opening up Auschwitz and Dachau again.  Stocks in those gas companies will go up and irritating non conformists like the Greeks will slowly disappear.

I think Nuland and the Ukrainians will provide help and funding.

The CIA will provide transportation and the NSA will tell them who to pick up.

They all agreed to be a little more discreet in what they are doing so slaves won't get upset as it ruins productivity.

Sun, 07/12/2015 - 13:10 | 6302597 OurUnitedStates
OurUnitedStates's picture

Rubble anyone? They could exit EU and NATO at the same time, cede all authority to Russia and corner the Ouzo and Vodka market at the same time. THAT would be a party....

Sun, 07/12/2015 - 13:32 | 6302676 GRDguy
GRDguy's picture

Pass the terms of the agreement into law.  Yeah, right.  Bastiat was right! Of course, ordinary folks don't have time for history, so they're condemned to repeat it.

“But how is this legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.” 
Frédéric BastiatThe Law

Sun, 07/12/2015 - 13:35 | 6302693 Faeriedust
Faeriedust's picture

And so the Anglo-American Banking Establishment gets what they've wanted since the Euro first debued as an alternative currency to the Almighty Dollar: the complete and utter disarray of the European Union.  

It's not true that all bankers are allies.  They've had unquestioned control over the peons of the developed nations for so long, that they war among themselves like any oligarchy.  The split between the London faction, with their New York cousins first playing second fiddle and then taking over the show, and the German bankers -- think Rothschild/Credit Anstalt -- has lasted for over a century.  It's been impossible to miss the shadenfreud in The Economist and other Anglo-American Banking propaganda organs, as Europe imploded.

Of course, they need to keep it all very civilized and restricted to the monetary markets, otherwise there might be a REAL war again.  And this time, Russia isn't going to be on England's side.  That will make a big difference.

The STUPID, it BURNS . . . .

Sun, 07/12/2015 - 19:30 | 6304037 Sovereign Economist
Sovereign Economist's picture

Faeriedust, you have it PRECISELY correct!

The New York contingent of the banking cabal ie. the Goldman Sachs gang has had Europe and it's financial arms in it's gunsights for a long time.  Remember, it was Goldman Sachs that cooked the books and brokered the deal to get Greece into the Eurozone despite a true failure to make the grade.  Another great example has been the Fed swaps in support of the Euro over the years.  This is a variant of what John Perkins refers to in his book, Confessions of An Economic Hitman.  The New York bankers indebted the EMU from the start and then just waited for the intended and planned economic implosion to blow up the debt situation worldwide, knowing full well who would collapse first.  And NOW you see what the New York gang had in mind 'coming into view' -- to sow the seeds of implosion of the EMU...

 

Sun, 07/12/2015 - 14:10 | 6302846 Fíréan
Fíréan's picture

EXTORTION ,   a crime when committed by anyone other than the troika.

Sun, 07/12/2015 - 14:22 | 6302907 Iam Yue2
Iam Yue2's picture
We got  five years, my brain hurts alot -  Five years, that's all we got 

https://www.youtube.com/watch?v=NEtnGHeaAgY

Sun, 07/12/2015 - 14:45 | 6302977 Die Weiße Rose
Die Weiße Rose's picture

Tsipras is a dead man walking

together with Varoufakis he ruined any chance Greece had.

This was the worst corrupt, misguided and most tragicly delusional Government

and it will collapse any day now, sadly much too late to avoid total failure and bankruptcy.

Tsipras and that Idiot Varoufakis were playing Chaos Theory Games with Greece...

amateur: I wonder what happens if we push these red buttons...

oops !

WR;)

Sun, 07/12/2015 - 16:46 | 6303405 Westcoastliberal
Westcoastliberal's picture

Didn't the people vote "OXI"? I would think this would bar Tspris from accepting such a deal. Flip the Troika the bird & get Putin on the phone for a "better deal"! I'll bet about two days of that will bring the banksters back to reality.

Sun, 07/12/2015 - 18:38 | 6303866 Sovereign Economist
Sovereign Economist's picture

The NSA is monitoring Tsipras' phone.  First call to Putin, first hint of a pivot east, Nuland would make her own phone call... to the 'wetworks' team.  Tsipras would be dead within days, if not hours, Russian Security Detail notwithstanding.

 

Remember Washington is Europe's suvereign...  Washington says 'Jump!' Europe asks, "How high" as they are leaving the ground.

Sun, 07/12/2015 - 21:40 | 6304453 mkkby
mkkby's picture

Jeezus you are a dumb fuck.  He's met with Putin many times, as reported here on zh.  It's not a tv show, asshole.  The guy commands the greek army, cops/swat.  He has enough security.

Mon, 07/13/2015 - 01:09 | 6304780 Sovereign Economist
Sovereign Economist's picture

mkkby,  you betray a certain lack of knowledge of what's going on behind the headlines...  You are right that it isn't a tv show.  It's far more serious, complex, and intricate than that.

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