07-15-2015, 03:55 AM
So seems like the talk of Brussels has moved on to providing some form of bridging cash to keep Greece afloat until at least the summer when it faces a €7bn repayments schedule up until August. One suggestion doing the rounds is that Athens could now be given cash which was last reserved under the European Financial Stabilisation Mechanism(EFSM) first set up by the bloc as an emergency rescue fund in 2010. There's never a good time to discuss the differences between various euro rescue funds, and especially not in the early hours of the morning. But the important thing to note is that any cash under the original EFSM is likely to no longer be available for member states, as states by the eurozone's own treaties. According to the treaty which established the new permanent mechanism (ESM) and thus replaced its temporary predecessors: "the European Financial Stabilisation Mechanism (EFSM) will remain in force until June 2013. As this mechanism is designed to safeguard the financial stability of the euro area as a whole, the European Council agreed that Article 122(2) TFEU will no longer be needed for such purposes. Heads of State or Government therefore agreed that it should not be used for such purposes.
After 17 hours of tough negotiation, euro zone leaders have agreed a deal that could pace the way for a third Greek bailout. But it's far from a done deal. Here's a timeline of the key dates ahead as creditors prepare to dole out up to 86 billion euros ($95.2 billion) as part of a reform-for-aid package:
Greek bailout timeline: what next?
As the FT tells it, German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras rose from their chairs at 6 a.m. on Monday and headed for the door, resigned to a Greek exit from the euro. "Sorry, but there is no way you are leaving this room," European Council president Donald Tusk reportedly said. And so a Grexit was avoided. But the FT's report is a bombshell, outlining just how hard the negotiations this weekend were for all involved. One participant described the negotiations as "violent." "They crucified Tsipras in there," one official told the FT.
FT report on Greek negotiations - Business Insider
Alexis Tsipras, Greece's prime minster reportedly asked for four concessions on the first draft. • No IMF involvement • A strong commitment on debt relief • A signal to the ECB to restart emergency loans • A smaller privatisation drive
Greece deal explained: how it reached the final agreement - Telegraph