Greek Default Looms In July After EU Rejects Greek Emergency Summit

Tyler Durden's picture

Submitted by Mike "Mish" Shedlock

More Greece “Uncertainty”: Default Looms in July, EU Rejects Greek Emergency Summit

Those who thought the situation in Greece was solved after prime minister Alexis Tsipras suddenly caved in to creditors’ demands need think again.

Greek tax revenues are running well under expectations. A default looms in July unless the creditors give more money to Greece so that Greece can pay back the creditors. As convoluted as that sounds, that’s precisely the way this madness works.

The creditors demand still more austerity but Tsipras said “no”. Instead, Tsipras seeks an emergency meeting, but European Commission president Donald Tusk said “no” to that proposal.

Supposedly this standoff represents “renewed uncertainty”.

Emergency Meeting Request Denied

The BBC reports EU Rejects Greek Request for Emergency Summit.

The head of the European Union has rejected Greece’s request for an emergency meeting aimed at ending an impasse over the country’s bailout.


Greece agreed to a third rescue package worth €86bn (£60bn; $94bn) last year and faces a looming debt payment. However, it has been unable to unlock the next loan instalment after clashing with its creditors over more reforms.


The International Monetary Fund and other European partners are demanding that Greece implement further austerity measures. They are looking to generate nearly €4bn in additional savings or contingency money in case Greece misses future budget targets.


But the left-wing government led by Alexis Tsipras has said it will not agree to any “additional actions” to what it had already signed up to last summer.


A special ministerial meeting was supposed to be held on Thursday, but Dutch Finance Minister Jeroen Dijsselbloem, who is in charge of the Greece negotiations, called it off.

Summit Request Denied

The Financial Times reports Donald Tusk Rejects Alexis Tsipras Summit Request.

Donald Tusk, the European Council president, has turned down a Greek request for an emergency summit on Athens’ bailout and told eurozone finance ministers to do more to narrow their differences.


Without a deal on new austerity measures, Greece faces a default on €3.5bn in debt payments that come due in July.


Greece is fast running out of cash to pay salaries and pensions in May because of lagging tax receipts. To cover the gap Mr Tsipras’s government has been strong-arming state entities, from the cash-strapped health service to the profitable water utility, to empty their bank accounts and place the funds with the central bank in a short-term loan arrangement.


Bailout negotiations have stalled over a request by the EU and the International Monetary Fund, Greece’s main lenders, that Athens legislate €3bn in “contingency” budget cuts that could be triggered if the programme veers off-course and fails to produce projected surpluses.


Euclid Tsakalotos, the Greek finance minister, has told negotiators getting additional cuts through the Greek parliament is politically impossible, and has asked instead for lenders to accept across-the-board budget cuts in case targets are missed. EU and IMF negotiators have rejected that proposal, however, insisting the additional reforms be targeted carefully to ensure they do not damage economic growth.

“Renewed Uncertainty”

“I am convinced that there is still work to be done by the ministers of finance who have to avoid a situation of renewed uncertainty for Greece,” Mr Tusk said after a phone call on Wednesday morning with Alexis Tsipras, Greece’s prime minister.

Talk of renewed uncertainty is ridiculous. It’s a certainty that what cannot be paid back, won’t be paid back.

The only thing “uncertain” is the same that that’s been uncertain since the beginning of the crisis: the timing of the credit event.

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JoeySandwiches's picture

Please...not this shit again.

cheka's picture

ha ha -- same message, same minute

my brother :)

wee-weed up's picture



The Greeks & the Venezuelains should get together...

And figure out a way to "go down the toilet" together...

They say misery loves company.

Haus-Targaryen's picture

Just negotiation tactics from both sides.  Nothing to see here. 

back to basics's picture

There are no negotiations. Troika plus one dictates and Tsakalotos writes it down. Tsipras will accept everything again and he will pass it through the treasonous Greek parliament with help from some the opposition parties if any of his own party oppose. It's all baked in the cake already. 

Greece is a German colony now and it will remain that way until Greeks decide to spill blood in the streets. The problem they have is that Leonidas died some 2,500 ago now and modern Greeks appear to have zero remnant of his courage. 

This isn't Sparta anymore. 

crazzziecanuck's picture

If you think Sparta was democratic, remember they had multiple forms of slavery and buggery of boys began at age nine.  Leonidas is the very last person to have resurrected and put in any leadership position.


back to basics's picture

 Thanks for the history lesson, I never knew.

Here's a history lesson for you now. If Tsipras was in place of Leonidas at the time, we'd all still be in the dark ages now.

HINT: The golden age of Pericles wouldn't have happened. 

StackShinyStuff's picture SAVED! Greece is FUCKED! Greece is SAVED! Greece is FUCKED! Greece is...and on and on and on

johngaltfla's picture

They're come Revenge of the PIIGS, the sequel.

fockewulf190's picture

Time to break out another: "CAN, KICK, MARK I, TYPE 4".  They better hope it works.  They have been known to become increasingly unreliable with constant use.

Ghordius's picture

back to basics: "...until Greeks decide to spill blood in the streets". explain that a bit? are you urging Other People to spill blood? or is it the only outcome that will satisfy you? oh, and explain a bit that "treason" thing, while you are there. who defines what is treason, in this Greek affair? you?

back to basics's picture

I would explain it to you if you weren't the pseudo intellectual asshole who comes on here trying to impress.

Find out on your own why politicians who violate their country's constitution and cede the sovereignty of their country are considered traitors, you don't need me to spell it out for you. Or are you incapable of even doing that?

Ghordius's picture

and who am I trying to impress? who am I impressing? for criminy, look at what is in front of you

I bring facts. which you are not able to refute nor to disprove. what do I get, here? dislikes

you bring ad-homs and those ghoulish "they have to spill blood" when talking about Other People's Blood, and add a "treasonous" Parliament (that still leaves out if you are an anarchist that wants all parliaments to drown into their own blood or not, and so on, but that's a different story). what do you get? likes

you bring in that accusation. you are the one that would have to point out where in the Greek constitution is the article that describes this affair as treasonous

I happen to have read the Greek Constitution. have... you? then point out the frigging article

I am not capable of finding an article that does not exist. That's the point, you can't disprove negatives

Can you? Can you point out one or more articles on which you are putting your accusation? Then DO IT

BarkingCat's picture

Why would anyone read the Greek Constitution?

Seriously.Ghordius, do you work for the EU?

Ghordius's picture

Barking Cat, what would you accept as proof... that I do not work for the EU? here, and without getting non-anonymous?

no, I don't work for the EU

yes, I do read a lot. including constitutions, plural

no, I do not have any degree. yes, I am called by university professors about certain areas where it looks like I am considered an expert. can't help that

it does not take long to read a constitution. I encourage you to read a couple of them. after all, lots of people die in defense of them, don't they?

OverTheHedge's picture

Ghordius = Wolfgang Schauble

It might not be true, but it certainly is fun to play

Ghordius's picture

"politicians who violate their country's constitution and cede the sovereignty of their country are considered traitors"

let's take this one apart. the key word is... considered. and the rant is... old

yes. every treaty, every alliance, every club membership a country has is a voluntary restriction on sovereignty

there is a word for this stance, and it is called Isolationism. the extremes of it would be a country that has no treaty whatsoever

and that's the thing of it. it is utter bullshit to say that a treaty is treasonous. hence your wording, it is considered as treasonous... by some, of course

you can do that game with every single law, can't you? problem is, treason is not that. treason is defined by constitutions and laws

if you have the article(s) that have been violated then spill them out

Theonewhoknows's picture
Theonewhoknows (not verified) Ghordius Apr 28, 2016 6:37 AM

If you really care for the dissection of how illegal the whole idea of bailing-out Greece was, check out discussion below this article - this is just a part: EFSM - based on art.122(2)"exceptional circumstances beyond Member States control" [the 2008 meltdown] and Vienna convention tells you that reading those words should be in good faith and in their ordinary meaning i.e. the help should be only granted given 122(2) conditions are met. 

Now Greek governments lied about their economic data to the EU, binged on cheap credit and got what markets gave them. Read Boris Ryvkin about that and basic Austrian Business Cycle theory. Also, EU knew about that - Parliamentary reporter Anne Silbert wrote that: 122(2) was supposed to be used against earthquakes, floods and hurricanes not 3 decades of bad policy, but due to the small size of this fund no one cared. 

Ghordius's picture

+1, it is an iteresting article, and I am familiar with the basic Austrian view on that. I am mostly "Austrian School" myself (starting with Menger)

but allow me the rant: does anybody here care?

that guy above just goes populistic in the worst fashion, in the "treaties are treason, period" way

meanwhile, I miss even the slightest shred of respect for the sovereignty of Other Peoples and Other Nation States in his argumentation

so yes, the accusation of illegal I can accept... but it is still a Greek domestic affair, specifically for Greek courts to decide. treason? no

there is not even a shred of evidence for that

GoldIsMoney's picture

There would be no "negotians needed" if Greece would not have it's sky high debts. In the end the only ones to blame are the politicions of Greece and their voters in the end. It's obviously not a nice thing to get reminded that you have to blame yourself for the mess you're in.

Lucky Leprachaun's picture

Going down the toilet would be unpleasant in the absence of toilet paper.

RadioFlyer's picture
RadioFlyer (not verified) wee-weed up Apr 28, 2016 5:12 AM

This one is a floater that won't flush.

AvoidingTaxation's picture

This time some refugees will be thrown under the bus. Banksters will not miss to fuck the Greeks and the Refugees! 2 pigeons with 1 stone!

Backin2006's picture

Come on! You didn't come on to ZH for cotton candy and ducklings, did you?

cheka's picture

please make it stop

default, grexit, brexit, default, collapse, implosion, sdr, currency war, pigs, etc

there is no exit from the united states of europe


Ghordius's picture

"there is no exit from the united states of europe"

there is no such thing as a USE, and I just have to point to the British Referendum for exit out of the EU, on June 23rd, 2016

there is an exit door to the EU. there is an exit door to the eurozone. there is the sovereign default door

as FinMin Tsakalotos says in regard to cuts, the Greek key to all those doors is in the hands of the Greek Parliament

at a certain point, and after all those doors have been pointed at, and substantiated with evidence, it becomes the burden of the accuser to prove that "there is no exit..."

if you are married, you have the exit door of asking a divorce. but would you enjoy external commenters to chant "you have no exit door" while you are thiinking about it?

the question is not if there isn't an exit door, the question is if the Greek Parliament wants to take one of those doors. it's not easy, dammit

Charming Anarchist's picture

Oh, I get it! 

Every Referendum vote counts!

Ghordius's picture

charming, indeed, but irrelevant

the UK does not even need a referendum. the British Parliament could vote this very afternoon about BreXit, and it would be a done deal

every and each Parliament here has the same powers. to enter/exit NATO, to enter/exit the ECB/eurozone, to enter/exit the EU, to enter/exit the Schengen Agreements, and so on

the UK is not in Schengen nor in the eurozone, Sweden is not in NATO, Norway is not in EU, Switzerland is in none, but has bilateral treaties with the EU, and so on

back to basics's picture

What's irrelevant is the pseudo intellectual stupidity you keep putting up. Do yourself a favour, walk away from your keyboard and stop embarrassing yourself. 

Ghordius's picture

if it's pseudo intellectual... then you could easily show where I am wrong, coulnd't you? I see your ad-hom. where is your argument? third time I ask you

what is really, really interesting is the sheer animosity that you show... at facts you do not like

Haus-Targaryen's picture

I was just thinking -- because the English referendum isn't actually binding, its more of a public poll, if they brits vote to leave --

All David Cameron has to do is give Parliment "free vote" on the matter, 30% or so of MPs vote to leave, the UK stays.  David Cameron says "if you don't like it elect a government that will take you out of the EU" and there is it.  Brits are stuck.   

Ghordius's picture

Haus, that's... good thinking, actually.

and would beg for an explanation, wouldn't it? how would be possible that The People want something... and their elected Parliament something different?

Nigel Farage's UKIP had 4 frigging million votes, and captured only two seats, in Westminster, btw. Cameron got his seat with 30k. why? FPTP

look, the ugly thing about BreXit... is that the British eltites are mostly against it, the British middle classes mostly fearful of it and the British underclasses are mostly flabbergasted by the discussions about trade treaties, trade blocs, preferential access, eurozone "shut out" of the City banks, and so on

to be frank, Blighty dismissed any serious public discussion about "all things EU"... and this does not help any of the parts

as long as it wasn't serious, the Leavers could say whatever they wanted (see EuroMyths)... and nobody cared to correct any factual error

and, as in every referendum, there are already lots of voices trying to frame the really simple question (this time) into a referendum about something else

except for the mentioned 30% of MPs and a small but vocal BreXit/UKIP/Leave minority, which will try to convince the way larger "undecided yet" group

Cameron is trying his "Fear Campaign", and the FT is producing a barrage of pro-EU articles... from the same journalists that usually spill a lot of ink against the EU

as in any referendum, I miss the box "Ask Me Again In Five Years"

eforce's picture

If they want UKIP to continue on its current trajectory (doubling in size per general election), that's one way to do it.

Backin2006's picture

Particularly the stuffed ones. There is no democracy with electronic voting.

cheka's picture

dream on.  poland gov fought the eu

then a plane crash got their minds right

EU like US and hotel california (insane assylum) -- you can check in, but never leave

samjam7's picture

I agree with you. They can "try to leave", legally it is possible. But practically? Will the US stand idle by to let this strategically important country potentially veer towards Russia? And what kind of economic pain could the EU inflict on Greece if they chose to abandone the Euro? Here I am sure our opinions diverge markedly yet again.

So for a long time now it doesn't come down to what Greece wants, but what kind of pain they're willing to accept and down the road even potential bloodshed to be 'free'.

Ghordius's picture

samjam, put this in the context of this comment I just made

the US looks like it is pivoting to Asia. Turkey is having a love-hate-trade relation with Germany, German Tornados are flying recon from Turkish bases into Syria, supporting a French involvement that was a Russian-French involvement until a few weeks ago. and so on, including Iran, etc.

most pain, or what kind of pain... depends on what the Greek Parliament decides. and, again, it's not easy for those 300

you can put it in terms "well, they might be stopped or castigated if they choose an exit door", but it's not the same as saying that the door does not exist

the power of Parliaments extends to war. it's the same. of course if you start a war... you might get some consequences, in practice

but sovereign default is something that several South American countries practiced repeatedly. Argentina just returned to the "financial markets"

ConfederateH's picture

"power of Parliaments"

I think you mean the "power of the goy puppets in parliaments.

OverTheHedge's picture

A couple of points 're Greece's ability to leave the EU.

Firstly, Greece's government are, to a man, bought and paid for, corrupt incompetents. Suggesting that the Greek voters have any say in either who is put forward as a representative, or how that "representative" then votes in parliament is disingenuous to say the least.

Secondly, Brexit has shown just how friendly the other countries in Europe are; I know I am not one to speak well of the French, but did  not the French president threaten economic warfare on a newly freed UK?

Lots of similar nonsense out there regarding no trade agreements etc. If Greece left the EU, or even defaulted on its debt, repercussions would be both personal for the politicians, and national for the sheep, pour encourager les autres.

The really sad part is, even if I am wrong, that is the anticipated response for a great part of both Greek and British electorate. If the EU has failed at anything, it  is in its ability to hide its desire for revenge against non-conformist. People in either country would vote to remain, not out of a conviction of a brighter future together, but out of a fear of revenge from the spurned centre. It really doesn't matter if this fear is valid or not, it is still fear. What a fabulous meeting of like-minded peers the EU has become.



Ghordius's picture

"did not the French president threaten economic warfare on a newly freed UK?"

yes, kind of. but... after being urged to do that... by Cameron, the PM of the UK

same as Obama was urged by Cameron to say similar things

so no, I reject your "it is in its ability to hide its desire for revenge against non-conformist"

OverTheHedge's picture

For me, a threat is a threat. The motivation behind it is purely speculative, but the threat is real. Plus, I don't trust any of these buggers.

Ghordius, you might be flogging a dead horse on this thread, perhaps trying too hard. To quote Shakespeare " methinks the lady dost protest too much".



ConfederateH's picture

Any EU country that tries to leave will face a full on Zio-blitzkreig.  The Zio-Medi, Zio-Banking, Zio-Oil, even the Zio-GlobalWarmists will start a multi front war against whoever would be so goyishly foolist to attempt to exit.

Just look at the way the sanctions against Russia, or the rapefugee crises are sheepishly accepted by the entire EU with barely a whimper.

But the reality here is that it matters not what the sheeple want, it is what the elites are forced into doing.  And they are blackmailed, bullied, or bribed to do what ever the tribe wants.  Or else.  Just think of the Armenian Genocide.  Or the German Genocide.  Or the white Russian genocide.  Or the Haldomort.  Or the on going genocide of western Europe.

Don't fuck with the tribe, you stupid goy. 


eforce's picture

"The tribe" doesn't act as a single unit, you have the lower level (Zionazis etc.) and then you have the more higher level Elders that lead to the creation of The Protocols etc.

UK leaving EU would start the collapse leading to revolutions across the EU as outlined in The Protocols and the eviction of the money lenders.

ConfederateH's picture

""The tribe" doesn't act as a single unit"

Not true, at least not always.  Think of "no snitch".  Then even your standart/ordinary eskimo that doesn't realize he is a just a puppet like the goy, will still protect the tribe and not risk being outcast by them.  Or circumcision.  Or think of the '33 headline "Judea declares war on Germany". 

For thousands of years this tribe has been feeding off of the white heard of cattle, and they have it down pat. 

Just consider how the goy-cucks have even started self-castrating.  Fucking brilliant.

Shropshire Lad's picture

It's not easy when they are threatening to kill your children if the Greek leaders do not do as instructed by the financial thugs.

dogfish's picture

All sorts of bullish news tonight the S&P should go to the moon.