Eurozone issues Greece an ultimatum; Athens hopeful of deal

[webfact]

Eurozone issues Greece an ultimatum; Athens hopeful of deal
By PAN PYLAS and LORNE COOK

BRUSSELS (AP) — European creditors issued Greece with an ultimatum Monday, saying the country must accept a key condition in bailout talks by the end of the week or face having to meet its debt commitments on its own — a prospect that many in the financial markets think would leave Greece little option but to leave the euro.

After a meeting of the 19 finance ministers of the eurozone over how to make Greece's debts sustainable broke down in seeming-acrimony after barely more than three hours, Greece was told it has to ask for an extension to its bailout program before further negotiations on the country's future financing and economic course can take place.

"We simply need more time and the best way for that at this point is extend the current program which would allow a number of months for us to work on future arrangements," said Jeroen Dijsselbloem, the head of the so-called eurogroup.

Without some sort of financing arrangements in place after the current bailout ends after Feb. 28, Greece would face real difficulties meeting its obligations, such as debt repayments, over the coming months. Bankruptcy and a potential exit from the euro would loom for Greece once again.

That's why investors grew increasingly concerned Monday that a deal may not emerge in time to avoid a so-called "Grexit" from the euro — the main stock market in Greece fell 3.8 percent while the euro slipped.

Investors are worried that the two sides are poles apart especially as a cornerstone of the election campaign of Greece's new left-wing government was to scrap the bailout program. In return for 240 billion euros ($275 billion) of rescue money from 2010 onwards, successive Greek governments have had to implement a wide array of austerity measures such as deep cuts to spending and pensions.

The new Syriza government, in power for barely three weeks, blames those measures for the country's economic ills — the Greek economy is around a quarter smaller than in 2008, despite a recent modest return to growth while unemployment and poverty have swelled.

"It would be an act of subterfuge to promise to our partners to complete successfully a program we challenged the logic of," Greece's finance minister, Yanis Varoufakis, said.

And despite the talk of deadlines, Varoufakis insisted a deal between the two sides was achievable and that visible progress could still be made within the next 48 hours despite Monday's swift breakdown in discussions.

"We are ready and willing to do whatever it takes to reach an agreement over the next two days," he said. "Europe will do the usual trick: It will pull a good agreement or an honorable agreement out of what seems to be an impasse .... I have no doubt that, within the next 48 hours Europe is going to come together and find phrasing that is necessary so we can submit it and move on to do the real work that is necessary."

For all his talk about deadlines, Dijsselbloem also said there was scope for compromise provided the Greek government commits to the broad outlines of the current program, such as maintaining tight budgetary discipline.

He added that he thought it was "still feasible" that Athens would ask for an extension.

"The request for an extension only commits to one thing: that you keep to the broad lines of the program," he said.

However, his suggestion that there was "some flexibility" built in the bailout program met with a fair degree of ambivalence from Varoufakis, who said it was a "nebulous" turn of phrase.

Varoufakis said he had been "perfectly happy to sign there and then" a plan proposed by Pierre Moscovici, the European Commission's monetary and economic affairs official. Details of the plan were sketchy but did apparently involve Athens putting on hold its anti-austerity measures in return for loans and the start of a 6-month negotiation to a future financial arrangement.

"We were offering to refrain from implementing our program for six months and all we were getting back was a nebulous promise of some flexibility that wasn't specified," Varoufakis said.

Malta's finance minister, Edward Scicluna, worried about the implications of a failure by Athens to request an extension: "Then we won't meet. There won't be anything. It will be a disaster."


-- (c) Associated Press 2015-02-17

[Mosha]

If the Greeks get their way. There will be global turmoil in the money markets.

[soumanioco]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

[wowfactor10]

These Shady Greeks entered the European union with fraudulent balance sheets.

There for legally they were never allowed to even join in the first place.

Exit Greece is the right answer..

[mrmicbkktxl]

the only reason they didnt live in poverty before,is because they spent money what they didnt have..germany will loose 80billion euros if greek collapse.so they have all right to pressure the greeks.just besides that,greek signed contracts.and just for your information,only reason why greek has the euro,is because they faked their economy numbers

[Wat dee]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

I watch a documentary few weeks back from 2012. When EU and IMF aided Greece with 130 billion euros(80/30 bio), 98.2 cents out of every euro went straight to German and French banks.

[dutchisaan]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

I watch a documentary few weeks back from 2012. When EU and IMF aided Greece with 130 billion euros(80/30 bio), 98.2 cents out of every euro went straight to German and French banks.

Give the link to this documantary, and than we can agree to disagree.

Sent from my iPad using Thaivisa Connect Thailand mobile app

[Berkshire]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

Can't blame the Germans for the Greeks lavishly spending themselves into outlandish debt. It's time to pay the piper.

[Prbkk]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

I watch a documentary few weeks back from 2012. When EU and IMF aided Greece with 130 billion euros(80/30 bio), 98.2 cents out of every euro went straight to German and French banks.

Yes, to pay back the money they had borrowed after living high on the hog and way beyond their means for decades. It's tragic that the young are now paying, in unemployment, for the mistakes of their parents and grandparents

[konying]

For some reason i do not think Greece is too worried about this ultimatum, as Greece already secured some deals with BRICS countries and Russia.

EU hopefully is ready, because once Greece is gone, rest assured Spain and Portugal will follow

[wabothai]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

If the Greeks get their way. There will be global turmoil in the money markets.

It has been said: they won't get their way and I totally agree, imagine they could.

The Greeks cannot ever dictate loan rules, even by their elected whoever he is.

You either step out or go bankrupt, up to you.

[rickirs]

The "new" Greek government will become after Friday the "former" Greek government if it does not accept the bailout extension. Reality bites and the Greeks are due for a nip.

[yawg]

These Shady Greeks entered the European union with fraudulent balance sheets.

There for legally they were never allowed to even join in the first place.

Exit Greece is the right answer..

The IMF/World Bank faked the numbers, not Greece.

[Wat dee]

These Shady Greeks entered the European union with fraudulent balance sheets.

There for legally they were never allowed to even join in the first place.

Exit Greece is the right answer..

The IMF/World Bank faked the numbers, not Greece.

http://areena.yle.fi/tv/2469367

Here is some info about what really happened.

[Wat dee]

You got to love this new Greek government for standing up to the Germans and defy their austerity program which is sinking the once leading continent on people's rights and social welfare, into poverty.

I watch a documentary few weeks back from 2012. When EU and IMF aided Greece with 130 billion euros(80/30 bio), 98.2 cents out of every euro went straight to German and French banks.

Give the link to this documantary, and than we can agree to disagree.

Sent from my iPad using Thaivisa Connect Thailand mobile app

http://areena.yle.fi/tv/2469367

Here it is.It is subtitled but in English.

[koo wallety tourist]

they are going to skip, then legalise sex drugs and rock and roll open the border and let the party begin. hope you have your seat allocation

[cookee68]

Oh well, make an agreement, or you are out on your arse. and take a few more countries with you.

[Paulc01]

For some reason i do not think Greece is too worried about this ultimatum, as Greece already secured some deals with BRICS countries and Russia.

EU hopefully is ready, because once Greece is gone, rest assured Spain and Portugal will follow

Maybe not a bad idea. And perhaps Italy will join them, Portugal, Italy, Greece, Spain. Then you can give some BRICS for those PIGS to live in.