Greek bailout deal set for ‘later this week after proposals examined’

Crisis talks aimed at preventing Greece crashing out the euro ended without agreement on Monday but eurozone chiefs have held out the prospect of reaching a deal later this week. Eurogroup president Jeroen Dijsselbloem said negotiators would be using Greek proposals made this weekend as a basis for further discussions. “It’s an opportunity to get that deal this week,” he said. Earlier, European stock markets had surged amid hope of an agreement, with the Athens exchange soaring 7.1% but the mood has grown more sombre as the day has gone on.

To enter into such uncharted waters and take up all the risk both for the eurozone and for Greece for two or three billion (euros) difference, I think it’s insane.

National Bank of Greece chief Louka Katseli

Speaking ahead of the emergency eurozone meeting, EU economics affairs commissioner Pierre Moscovici said he believed a deal could be reached to avoid Greece defaulting on its debts. Germany’s hardline finance minister Wolfgang Schaeuble was pessimistic of a deal being reached, as was his Finnish counterpart Alex Stubb who spoke of “wasted” air miles. Greece has been kept afloat by two bailouts totalling 240bn euros, but the programme is due to expire at the end of June, on the same day the country owes 1.6bn euros to the International Monetary Fund (IMF).

I think the Greek government has finally understood that it had to send concrete and solid counter-proposals.

Pierre Moscovici, European Commissioner for Economic and Financial Affairs

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