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A few hours before Greece is officially declared bankrupt, news reports are claiming that Prime Minister Alexis Tsipras finally decided to re-open the communication lines with Brussels, thus taking an initiative to once again work with Greece's creditors in the framework of find an agreement/solution. Things are developing quickly because if a solution is not found then Greece will officially default by midnight. The BIG NEWS, according to some news sites, is that this new agreement will not include the IMF.
The Greek negotiating team is currently in heavy deliberations at the Maximos Mansion under the chairmanship of Tsipras for this very reason.
This sudden twist in developments unfolded after European Commission president Juncker sent a new improved proposal in the early hours of Tuesday morning. The reports claim that the new proposal also includes a reference to the regulation of the Greek debt. This was brought about following efforts from officials in France, Germany and believe it or not from forces within Greece as well.
The same reports also stress that the government decided to change its stance when it realized the severity of the present situation as a result of the imposed bank controls.
It was also revealed that more and more voices from within SYRIZA also called on Tsipras to accept this newest proposal, or at least re-open a highway of communication with Greece's creditors, with the aim of mitigating any differences on both sides.
According to enikos, Deputy finance minister Dimitris Mardas became the latest official to call for a resumption of negotiations, although he set as a precondition a restructuring of the country's debt.
"If we can resolve this issue, then the road to a discussion could reopen... this agreement, naturally, must create the impression that it is leading the country out of the crisis. Such a development is, even now, the preferred solution," Mardas wrote in online site tvxs.gr.Syriza MEP Stelios Kouloglou, a former journalist and owner of tvxs.gr wrote in the same site that Greece should not reject outright the new proposal by European Commission president Jean-Claude Juncker.
"The balance of power against the Greek government is overwhelming. In the present circumstances, the government is not called upon to achieve a resounding victory, but the best possible compromise, with the fewest possible losses."Kouloglou also warned that if the "no" prevails in the referendum, as the government has called for, "a punishing response (by European political and economic rulers) will be adopted." In case of a "yes" result, "the government will be forced to resign."
Mardas' and Kouloglou's articles appeared a day after another Syriza MEP, Costas Chrysogonos, made a public a letter to prime minister Tsipras he said he wrote on March 19 and to which he never got an answer. In the letter, Chrysogonos warns Tsipras that he does not have a mandate to take Greece out of the eurozone and warned against "verbal escalation, which is a trap set by the other side."
"A rupture with the creditors is an impossible choice and, should we try it, the result will return to its bailout trap under worse conditions, like a prisoner who tries to escape, fails and ends up in solitary confinement," Chrysogonos wrote Tsipras.At this point anything can happen, but at least the government has decided to once again open the lines of communication with Greece's lenders. The only thing that is not in Greece's favor is time. Greece has until midnight to come to some sort of agreement, or it is GAME OVER.
Frappers, the news is still developing and we still do not know how this will swing. We also do not know if they will call a Eurogroup meeting this afternoon in order to seal this. All we can do is wait. (References, defencenet, iefimerida, enikos, protpthema, SKAI Tv, Kathimerini)
LIVE BLOG - HellasFrappe is following the story & updates will be posted throughout the day
UPDATE 13.35 local time - One report from protothema said that “if Tsipras wants a solution he needs to send a letter to Juncker, Eurogroup Chief Jeroen Dijsselbloem, German Chancellor Angela Merkel and French President Francois Hollande stating that he accepts the proposal submitted by the three institutions on Sunday and start a campaign in favor of YES.”
UPDATE - 14.20 Local time - State Minister Nikos Pappas,on Tuesday at noon attempted to dispel the rumor that attempts to restart negotiations would scupper the July 5 referendum. Speaking in the Greek Parliament, Pappas said: "Let them dream on. Referendum as scheduled. Strong "no" by our people. A deal favorable to both Greece and Europe."
UPDATE 15:00 Local Time - As announced by the government, Alexis Tsipras held talks with European commission president Jean-Claude Juncker, European Central Bank president Mario Draghi and European Parliament president Martin Schulz on Tuesday but the subject of these talks was not released to the press.
UPDATE 15.15 Local Time - According to a report that was just released on defencenet, Tsipras will be leaving for Berlin or Brussels (or to both cities - it was not clarified) immediately -even today- in order to meet with German Chancellor Angela Merkel and Jean-Claude Juncker. According to the report, Tsipras proposed a viable solution to Juncker, in order to solve Greece's present financial problems. This new solution, has the signature of SYRIZA MP John Dragasakis and is reportedly going to be announced on ERT television on Tuesday night. The same report on defencenet claims that the Greek PM will seek to hold talks with Merkel - and French President Francois Hollande in the coming hours. Meanwhile, State Minister Alekos Flambouraris said that "if Greece's partners want a solution they should stop presenting old proposals as new." He also added that an agreement can only be reached if there are "no cuts in wages and pensions, if the collective work agreements are restored and if there is a settlement to the debt." All indications show that our EU partners are retreating on the issue of debt rescheduling which is a good indication that a possible agreement will be reached.
UPDATE 16:15 Local Time - Finance Minister Yanis Varoufakis on Tuesday confirmed that Athens is not going to pay the 1.6 billion Euro installment to the IMF. When asked by AP about whether Greece will pay, Varoufakis said "no." His comment came amid speculation that Alexis Tsipras is trying to craft some sort of last-minute deal with creditors before the payment is due and before the European part of Greece's bailout comes to an end.
UPDATE 16:45 Local Time - (Ελεος ρε παιδια... ελεος!!) - Turkey said on Tuesday that it is willing to undertake Greece's 1.6 billion euro payment, or provide a zero interest loan in order to promote peace and solidarity among the two countries, while helping Greece to break the pressure of the IMF, Eurogroup and other creditors. - Daily Sabah
UPDATE 17:30 Local Time - HellasFrappe was spot on this morning when it reported this, because as always we trust our gut instinct... This story just came in from ANA-MPA, or the Greek state news agency - Greece’s government formally asked for a two-year bailout program from the European Stability Mechanism, according to a statement from the office of Prime Minister Alexis Tsipras. The request is to cover all of the country’s financial needs for the next two years, along with a debt restructuring plan, the Greek government said in the statement (in other words a third bailout worth 20+ billion euros). The government will continue negotiations seeking a “viable agreement” within the eurozone, it said. Already there are mixed reactions over the offer, one report on CNN described SYRIZA's offer as something that cannot even be discussed... leaving it to be understood that SYRIZA once again just wants to secure funds but apply no reforms.
UPDATE 18:00 Local Time - Eurogroup chief Jeroen Dijsselbloem announced that a teleconference will take place tonight to discuss official request of Greek government received this afternoon. The ministers will have their conference only 5 hours before the European part of Greece's bailout program expires. "Extraordinary Eurogroup teleconference tonight 19:00 Brussels time to discuss official request of Greek government received this afternoon." enikos
UPDATE 18:20 Local Time - It was just reported by SKAI channel, and Naftemboriki that a group of far Left radicals from ANTARSYA (which support the SYRIZA party) interrupted an important meeting of the Athens Bar Association on Tuesday where more than 50 lawyers were there to discuss this Sunday's referendum. The protesters -who claim to respect democracy- bullied and verbally attacked the lawyers because they are not in favor of the NO vote at this Sunday's election and then the radicals forced the lawmakers to cancel the meeting. (This is just one more example of the type of democracy that Leftists support. Anyone who is against their ideology is wrong, a fascist, and undemocratic. They usually bully, belittle, insult and threaten anyone who disagrees with them.) As soon as HellasFrappe has the relevant video that was broadcasted on SKAI channel we will post it.
UPDATE 21:00 Local Time - Cuckoo!!! - A portion of the SYRIZA party, or it’s affiliated “Communist Trend” group, on Tuesday warned the government on the site www.marxismos.com not to “dare take a step back”, and at the same time demanded the immediate nationalization of banks, supermarkets, foodstuffs and pharmaceutical producers and even private health care units all across Greece! In other words... a return to Marxism (Double Cuckoo!!!). This obviously extreme element within SYRIZA also had the audacity to demand the expropriation of all Church property. Wait there is more, they also said they want the confiscated businesses and “means of production” to be passed to “workers’ control”. (Triple Cuckoo!!!)