Leaders seek to haggle over deal blips / A Brady plan to end Europe’s crisis

Article reports that talks between eurozone governments and private holders of Greek bonds could last several more weeks as European leaders try to carve out in July 2011 terms for a new €120bn bail-out of Greece with 'significant' private sector involvement.

Although European Union finance ministers agreed to a much-anticipated €8.7bn aid payment to Greece on the 2 July 2011 – thereby ensuring the debt-burdened country would not default on its sovereign bonds later in July 2012 – they were forced to put off a final deal on the much-larger second rescue package.

Separately, the European Commission issued on the 2 July 2011 its fourth review of Economic Adjustment Programme for Greece.

The sovereignty of Greece would be massively limited, Eurogroup leader Jean-Claude Juncker was reported to have said.

EUObserver, 4.7.11: Greece faces 'massive' loss of sovereignty http://euobserver.com/9/32582

ESO: Background information: Banks signal move on Greek crisis / Investors doubt Greek peace will last http://www.europeansources.info/record/banks-signal-move-on-greek-crisis-investors-doubt-greek-peace-will-last/

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

BBC News, 2.7.11: Greece crisis: Eurozone backs 12bn euros in aid http://www.bbc.co.uk/news/business-14003788

ESO: Background information: Rebels urged to back Greek austerity deal / Europe looks for contingency plan B / EU ‘Brady bonds’ plan for Greece http://www.europeansources.info/record/rebels-urged-to-back-greek-austerity-deal-europe-looks-for-contingency-plan-b-eu-brady-bonds-plan-for-greece/

Kathimerini, 3.7.11: Funds in bag, focus on reforms http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_03/07/2011_396892

Kathimerini, 3.7.11: EC concerned over reform implementation http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_03/07/2011_396858

European Commission: DG Economic and Financial Affairs: Occasional Paper, No.82, July 2011: The Economic Adjustment Programme for Greece - Fourth Review - spring 2011 http://ec.europa.eu/economy_finance/publications/occasional_paper/2011/op82_en.htm

To Ethnos, 4.7.11: Athens becomes EU 'protectorate' (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/755611-athens-becomes-eu-protectorate

The Guardian, 6.7.11: Only a new Marshall Plan can do it (via PressEurop) http://www.presseurop.eu/en/content/article/760111-only-new-marshall-plan-can-do-it

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