Riot police are on the streets in Athens to prevent clashes between rival anti-austerity and pro-EU demonstrations tonight.
When I spoke with my son, who lives in Greece, a few days back, we both agreed that it was very possible that come Monday, the banks might be closed and if that happened, who knows when they might re-open. When I first suggested that he start accumulating cash some weeks back, he was not unduly concerned. However by last week, each day they had been taking out the maximum allowed. And because they live on a Greek island and dependent on the ferries running for groceries, buying staples in a just in case scenario of bare shelves in the stores.
The European Central Banks on Friday provided emergency finance to the Greek banks, but only enough to cover up until Monday’s summit.
On Friday, Europe turned the screw. The European Central Bank announced for the second time in three days that it was providing emergency finance to prop up the Greek banks. But Frankfurt was not over-generous: the lifeline was only long enough to cover the period up until Monday’s summit. The implied threat was clear: do a deal or we cut off the money and your banks go bust.
http://www.theguardian.com/...
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talks have been going on all weekend to see if a compromise can be reached. These negotiations have been influenced by Russia and the United States, more accustomed to lead roles but on this occasion lower down the billing. Tsipras has been flirting with Putin, something that has not gone down well with Barack Obama. Washington has made its feelings known.
Tsipras now has a big decision to make. Clearly, the creditors would be getting more out of this game of give and take than he is: they are not demanding the full pound of flesh but something quite close to it. If he folds, he will have big political problems at home. If he remains defiant he will have a bank run to contend with by Tuesday morning.
There looks to be some light at the end of the tunnel.
Greece's proposals leak out
Details of Greece’s new proposals are starting to emerge in Brussels:
Joost de Vries of Dutch newspaper Volkskrant has tweeted a page showing where the cuts and tax rises fall. And there’s a hefty increase in revenues from VAT over the next 18 months. Greece has also accepted that pension must be reformed, and is planning a hike in pension contributions and an increase in health contributions from retirees. However, it appears that actual pension rates won’t be cut, allowing Athens to argue it has kept to its red line. There’s also a one-off tax on company profits, for firms earning at least half a million euros.
Photos: Tonight’s emergency summit begins
I will keep updating as I learn more. It is such a challenge to know what is going on, (because no one really does) and one reads too many conflicting reports.