Extraordinary Eurogroup meeting, 11-12 July 2015 / Euro Summit, Brussels, 12-13 July 2015 / European Council, Brussels, 12 July 2015

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Series Details 12.07.15
Publication Date 12/07/2015
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The Eurogroup on the 11 July 2015 discussed the request by the Greek authorities for financial assistance from the European Stability Mechanism (ESM) and their new proposals for a reform agenda.

Ministers were presented with the assessment by the institutions of risk to financial stability in the euro area, Greece's financing needs and the sustainability of its public debt.

Based on this assessment the Eurogroup exchanged views on whether there was sufficient basis to start formal negotiations on a new financial assistance programme for Greece.

At around midnight on the 11 July 2015 it was announced that: The Eurogroup held an in-depth discussion on the Greek authorities new request for financial assistance from the European Stability Mechanism (ESM) and their new proposals for a reform agenda. Greece submitted the new reform plan on Thursday, 9 July 2015.

Ministers agreed to adjourn the meeting until 11.00 on 12 July 2015.

The discussion was based on the first assessment of the Greek proposals by the three institutions - the European Commission, the European Central Bank and the International Monetary Fund. The institutions also evaluated risk to the financial stability in the euro area, Greece's financing needs and its debt sustainability. The assessment was sent to the Eurogroup President on the eve of the meeting.

'It is still very difficult, but work is still in progress', said Eurogroup President Jeroen Dijsselbloem after the meeting. 'We had in-depth discussions of the Greek proposal, issues of credibility and trust and the financial issues involved',

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Following up the special Euro Summit on Greece on 7 July 2015, EU leaders were due to meet again on 12 July 2015 to take stock of the situation and set out the political guidelines for the next steps.

European Council President Donald Tusk had summed up the importance of this European Council as 'the most critical moment in the history of the eurozone'.

However, on the morning of the 12 July 2015 Mr Tusk announced that the while leaders of the eurozone countries would meet (Euro Summit), the meeting of the European Council due to be held after the Euro Summit would be cancelled.

13.07.15: Negotiations within the Euro Summit continued through the night of 12-13 July 2015 - early morning reports suggested that a compromise text agreed by Greece, France, Germany and the EU would be put to the other Eurozone leaders on the morning of 13 July 2015.

President of the European Council Donald Tusk announced in the morning of 13 July 2015 that an agreement had been reached.

The leaders from the euro area member states agreed in principle that they were ready to start negotiations on an ESM financial assistance programme for Greece.

There were a number of strict conditions to be met before negotiations could formally begin.

The agreement would have to be approved by the Greek parliament and by several national parliaments.

Following national procedures, the Eurogroup would work with the institutions to swiftly take forward the negotiations. Euro area finance ministers would also urgently discuss how to help Greece meet its financial needs in the short term, the so-called bridge-financing.

Note that a further pre-planned Eurogroup meeting also took place later on the 13 July 2015. Ministers held a follow up discussion on the agreement negotiated at the Eurogroup and the Euro Summit over the previous two days.

Separate to discussion on the Greek situation the following topcs were discussed:

+ Follow-up to the June European Council: the Five presidents' report. Ministers exchanged views on the Five president's report, which outlines a plan for further deepening of Economic and Monetary Union (EMU). They expressed strong support for taking steps forward in this process. The discussion would continue at the Ecofin Council meeting on 14 July 2015.

+ Review of the fiscal compact: assessment of national provisions. The European Commission debriefed the Eurogroup on its ongoing review on how the member states that are signatories to the Treaty on Stability, Coordination and Governance (known as 'fiscal compact') are transposing into national law the compact's provisions on balanced budget. The Eurogroup would discuss this issue again in September 2015.

+ Election of the Eurogroup President. The Eurogroup re-elected Dutch Minister for Finance Jeroen Dijsselbloem as its President for the second term of 2.5 years.

Also, separately, the IMF, which had taken part in the negotiations over the weekend in Brussels, announced on the 13 July 2015 in Washington that Greece had failed to make a further repayment of €456m to the Fund due on that date.

Source Link http://www.consilium.europa.eu/en/meetings/european-council/2015/07/12/
Related Link(s)
ESO: Background information: The Greek debt crisis: Key sources http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/
ESO: Background information: Greek bailout referendum, 2015 http://www.europeansources.info/record/greek-bailout-referendum-2015/
ESO: Background information: Official projection shows 'no' vote surging ahead / After ‘no’ vote, ECB holds key for Greece / German calls for Grexit mount as EU stunned by 'No' vote http://www.europeansources.info/record/official-projection-shows-no-vote-surging-ahead-after-no-vote-ecb-holds-key-for-greece-german-calls-for-grexit-mount-as-eu-stunned-by-no-vote/
ESO: Background information: Euro Summit, Brussels, 7 July 2015 / Eurogroup, Brussels, 7 July 2015 http://www.europeansources.info/record/euro-summit-brussels-7-july-2015-eurogroup-brussels-7-july-2015/
ESO: Background information: Tsipras wins Parliament's support for proposals but also suffers losses http://www.europeansources.info/record/tsipras-wins-parliaments-support-for-proposals-but-also-suffers-losses/
Eurogroup: Meeting, Brussels, 11 July 2015 http://www.consilium.europa.eu/en/meetings/eurogroup/2015/07/11/
EP: EPRS: Blog, 11.07.15: Extraordinary European Council meeting on Greece, 12 July 2015 http://epthinktank.eu/2015/07/11/12-july-extraordinary-european-council-meeting-on-greece/
Politico, 12.07.15: Euro leaders: Greece must earn trust before deal http://www.politico.eu/article/tsipras-austerity-grexit-greece-reform-bailout-merkel-vote-default-debt/
Kathimerini, 12.07.15: Greece talks spill into second day as finance chiefs deadlock http://www.ekathimerini.com/199351/article/ekathimerini/news/greece-talks-spill-into-second-day-as-finance-chiefs-deadlock
Deutsche Welle, 11.07.15: Is Germany preparing for a temporary Grexit? http://dw.com/p/1FxL1
EUObserver, 12.07.15: Greek bailout decision delayed amid confusion https://euobserver.com/economic/129591
Website: Club de Paris http://www.clubdeparis.org/en/
BBC News, 12.07.15: Greece debt crisis: EU summit cancelled as talks continue http://www.bbc.co.uk/news/world-europe-33497353
EurActiv, 12.07.15: Greece's third bailout request suffers blow at Eurogroup meeting http://www.euractiv.com/sections/euro-finance/greeces-third-bailout-request-suffers-blow-eurogroup-meeting-316235
Deutsche Welle, 12.07.15: Finland's government opposes further Greek bailouts http://dw.com/p/1FxVM
Kathimerini, 12.07.15: Text of Eurogroup proposals agreed 12 July 2015 and submitted to Eurozone leaders http://www.ekathimerini.com/199384/article/ekathimerini/business/copy-of-eurogroup-proposals
EurActiv, 13.07.15: Greece bailout talks drag on through the night http://www.euractiv.com/sections/euro-finance/greece-bailout-talks-drag-through-night-316239
Kathimerini, 13.07.15: Eurozone leaders discussing compromise solution in Brussels http://www.ekathimerini.com/199407/article/ekathimerini/news/eurozone-leaders-discussing-compromise-solution-in-brussels
BBC News, 13.07.15: Greece debt crisis: Eurozone summit reaches agreement http://www.bbc.co.uk/news/world-europe-33503955
European Council: Press Release, No.579, 2015 (13.07.15): Remarks by President Donald Tusk after the Euro Summit of 12 July 2015 on Greece http://www.consilium.europa.eu/en/press/press-releases/2015/07/12-tusk-final-remarks-euro-summit/
Kathimerini, 13.07.15: Eurozone clinches deal with Greece after all-night haggle http://www.ekathimerini.com/199413/article/ekathimerini/news/eurozone-clinches-deal-with-greece-after-all-night-haggle
Politico, 13.07.15: Euro leaders, Greece strike a deal http://www.politico.eu/article/euro-leaders-greece-strike-a-deal-avert-grexit-thisisacoup/
Euro|Topics: Main Focus, 13.07.15: Agreement between Euro Group and Athens http://www.eurotopics.net/en/home/presseschau/archiv/archiv_dossier/DOSSIER166214-Agreement-between-Euro-Group-and-Athens
Euro Summit: Statement, No.570, 2015 (13.07.15): Euro Summit statement, 12 July 2015 http://www.consilium.europa.eu/en/press/press-releases/2015/07/12-euro-summit-statement-greece/
Eurogroup: Statement, No.580, 2015 (13.07.15): Press remarks by J. Dijsselbloem, President of the Eurogroup after the Eurozone summit of 12 July 2015 http://www.consilium.europa.eu/en/press/press-releases/2015/07/13-dijsselbloem-remarks-after-eurozone-summit/
Deutsche Welle, 13.07.15: 'Grexit has gone' after eurozone leaders reach last-minute deal http://dw.com/p/1FxkP
Eurogroup: Meeting, Brussels, 13 July 2015 http://www.consilium.europa.eu/en/meetings/eurogroup/2015/07/13/
IMF: Press Release, No.332, 2015 (13.07.15): Statement by the IMF on Greece http://www.imf.org/external/np/sec/pr/2015/pr15332.htm
IMF: Press Release, No.334, 2015 (13.07.15): Statement by the IMF on Greece http://www.imf.org/external/np/sec/pr/2015/pr15334.htm

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