Greece submits economic reform plan

Eurozone leaders decided at an emergency meeting earlier this week that Greece should have one more chance to present a credible rescue plan.

The pressure has been on Greece all day even after the Greek parliament passed a harsh austerity package that it hopes will lead to a three-year bailout. They will now study it ahead of European Union meetings at the weekend.

The Greek “formula for disaster” involved “the toxic combination of austerity with hard money”, he argued, and “most of the Republican Party” wants to “impose that kind of toxic policy mix on America”.

The official, who spoke on condition of anonymity because he was not authorized to speak publicly, said eurozone leaders hope to issue a statement that would pave the way for the formal for the start of Greek bailout negotiations. And it needs to provide proof those measures will happen.

That sentiment echoes much of the language in the run-up to the meeting.

“We had an in-depth discussion of the Greek proposals and the issue of credibility and trust was discussed”, Jeroen Dijsselbloem, the eurozone’s top official, said on leaving the meeting.

Greece wants creditors to restructure its debt.

Greek banks have been shuttered for the best part of two weeks and daily withdrawals from ATMs have been limited to a paltry 60 euros ($67). The economy is in freefall and the country faces big debt repayments in the coming weeks.

A third source said the “first impression was positive” but a deeper analysis of the proposals was still required.The proposals set out in a 13-page document concede to Greece’s paymasters several key points that Tsipras’s ruling coalition – and Greek voters – had previously fiercely opposed.

Still, the measures proposed, which include changes long-demanded by creditors, such as changes to pensions and sales taxes, weren’t enough to unlock an agreement in Brussels. Following months of deteriorating relations, creditors are demanding firm legislative action to back up the proposals.

The Greek government will also seek parliamentary approval for the reform package.

“We have to make a major decision”.

Schaeuble was clear in who he blamed for current crisis.

France has been the staunchest ally of Greece’s radical left government in recent months. This would be Greece’s third bailout in five years. The European source was commenting on a report in the Frankfurter Allgemeine Sonntagszeitung newspaper that said the plans appeared in a one-page German finance ministry “position paper” which was handed to other member states. Traditionally, eurozone ministers agree by mutual consensus.

Greek prime minister Alexis Tsipras has offered to implement tax rises and spending cuts in return for a financial lifeline of €53.5bn to stave off bankruptcy and the possibility of crashing out of the euro. Although the country’s annual budget deficit has come down dramatically, Greece’s debt burden has increased as the economy has shrunk by a quarter. Actually, no – Greek debt is up only 6 percent since 2009, although that’s partly because it received some debt relief in 2012.

“If this was a negotiation from 1 to 10, I think we are still standing somewhere between 3 and 4, so making progress but we are not there yet”, Finnish finance minister Alex Stubb said as he entered the meeting in Brussels. “At what tempo are you going to do it”. At what moment are you doing to do it?