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Cautious optimism as new Greek proposals seen as basis for possible deal

As widely expected, no final deal between Greece and its creditors was struck at yesterday’s meetings of Eurozone finance ministers and Eurozone leaders.

However, the updated proposals submitted by the Greek government appeared to be seen as a basis for a possible deal. The Greek government has moved closer to the lenders’ position – notably on pensions and VAT reform. The latest Greek plan envisages savings worth nearly €8bn in 2015 and 2016.

Speaking after the meeting of Eurozone leaders, German Chancellor Angela Merkel said “certain progress” was made, but “there’s still a lot of work to do.” She stressed that “we haven’t talked about a third [bailout] programme”, because the Greek government itself does not want it.

Some leaders were, however, less optimistic. Lithuanian President Dalia Grybauskaitė said, “An agreement is necessary, but we’re still far away from it.” Ahead of the meeting, she had tweeted, “The Greek government still wants to party, but the bills have to be paid by somebody else.”

It was also clear from the press conferences that the issue of debt relief for Greece was not discussed. Officials from the three institutions – the European Commission, the ECB and the IMF – will continue the technical work on the new Greek proposals.

Eurozone finance ministers will meet again on Wednesday, with a view to finalising a deal ahead of the European Council summit on Thursday and Friday.

SYRIZA MP and deputy speaker of the Greek parliament Alexis Mitropoulos told Mega TV this morning, “I believe that this programme as we see it…is difficult to pass by us.” Meanwhile, thousands of people staged a pro-euro rally outside the Greek parliament in Athens yesterday.

Separately, the ECB has this morning again raised the ceiling on emergency funding for Greek banks via the Emergency Liquidity Assistance (ELA) facility – amid reports that €1.6bn of deposits was withdrawn from Greek banks yesterday.

Open Europe’s Pieter Cleppe appeared on the BBC Radio 4’s Today programme, arguing, “Transfers and intervention into domestic economic policy have certainly failed for Greece over the past five years, and yet Eurozone leaders want more of the same.”

Raoul Ruparel appeared on France 24 yesterday and Nina Schick appeared on BBC World this morning discussing the prospect of a deal between Greece and its creditors. Open Europe’s live coverage and analysis of yesterday’s Eurogroup and Eurozone summit featured on the live blogs of The Guardian and The Daily Telegraph.