European Officials Announce Deal on Greek Debt Crisis

VIDEO: The massive bailout requires strict spending cuts while allowing Greece to keep using Euro currency.
Share
Copy

The latest from Greece's financial crisis (all times local):

———

5:30 p.m.

Greek Prime Minister Alexis Tsipras went straight to his Athens office upon returning from the marathon eurozone summit in Brussels and into a meeting with Finance Minister Euclid Tsakalotos and other senior party officials.

Tsipras must push several unpalatable measures through Parliament in the next two days, including sales tax increases and pension reforms, to guarantee that talks on a third multibillion-euro (dollar) bailout for Greece can start in earnest.

He faces an uphill battle to persuade members of his own Syriza party, as well as his governing coalition partner, to back the deal he made with creditors after months of insisting he would not accept more austerity measures.

———

4:45 p.m.

Greece's labor minister says the country is likely to see another general election this year.

Panos Skourletis, a former spokesman for the ruling Syriza party, told state television the government will need "borrowed votes from the opposition" to pass the new austerity measures demanded by creditors.

He says "I cannot see how we can avoid elections in 2015 ... It's unnatural: We believe in something different than what we've been forced to sign with a gun pointed to our head."

Pro-European Greek opposition parties have promised to back the bailout deal negotiated by Prime Minister Alexis Tsipras as the only alternative to being expelled from the shared euro currency.

Skourletis said, however, that a quick election could not be held because of the state of Greece's economy, with its banks still closed. 

———

4:25 p.m.

Pope Francis says past Greek governments bear responsibility for accumulating the country's huge debt but asks if companies can get bankruptcy protection, why not countries?

When asked by reporters about Greece's financial situation before a deal was announced Monday, Francis said "certainly it would be too simple to say that the fault is only on one side."

Francis noted proposals at the United Nations to essentially let countries seek bankruptcy protection just like corporations. He asked "if a company can declare bankruptcy, why can't a country do so and we go to the aid of others?"

Bolivia, whose President Evo Morales hosted Francis during his three-nation South American tour, is reportedly pushing the proposal at the United Nations.

———

4:10 p.m.

NATO Secretary General Jens Stoltenberg says EU's tentative bailout agreement with Greece also boosts European security.

 Stoltenberg says "it is good for Greece, the EU and Europe, for NATO and for all of us." He spoke during a visit to Slovenia, a eurozone member that took part in the negotiations. The NATO chief says "it's not only about stability and prosperity. It's about security, too."

Slovenian Prime Minister Miro Cerar says Greece must now fulfill the conditions to get "a generous bailout" in return for strict reforms. He says "the key is for the Greek government to take steps to show it's worthy of trust."

Slovenia's exposure to Greek debt amounts to 3.2 percent of its national gross domestic product.

———

3:35 p.m.

The European Central Bank has decided against letting Greek banks draw more emergency credit — for now.

A bank spokesman said Monday that emergency liquidity assistance "was maintained at its current level" following a teleconference of the bank's governing council.

Page
Join the Discussion
blog comments powered by Disqus
 
You Might Also Like...