Greece: Euro-group meets without Varoufakis – SPIEGEL ONLINE

A quick overview

This is happening:

• The Euro Group intends to phase out the aid program for Greece.
• The stop of payments is a response to the announcement of Greece’s Prime Minister Tsipras, the Greeks in a referendum held on. 5 July vote on the austerity package to leave. His party wants to ask voters to “no” vote
• Whether it ever comes to such a referendum, is uncertain -.. The payments to Greece are already out on the night of June 30th

On Saturday afternoon at 16.40 clock to unrest spread in the Council building of the European Union: The meeting of euro zone finance ministers will be interrupted a press conference of the Euro-group leaders Jeroen Dijsselbloem set. At the same time, a smaller room was decorated with the Greek and the European flag. It works already, as if it were the last time. The Greek Finance Minister Giani Varoufakis postponed his statement however on later and let Dijsselbloem precedence. The Dutchman told – sober as ever – the end of the Euro Group, as we know it. The statement, he said at the beginning, may be borne by all euro zone members, except Greece. He very much regret Dijsselbloem said that the Greek Government rejected the proposal of the institutions and the negotiations have broken off unilaterally (read the details of the offer, the creditor).

background of radical change: Last night, the Prime Minister Alexis Tsipras announced to let the Greek people on July 5 to decide in a referendum on the latest offer of the creditors. The Euro Group chief described the project as “unfair” because the Greek Government had recommended the voters in advance to reject the reform proposals. Tsipras and several of his cabinet ministers had said they would call their voters to vote against the reform package.

Although some euro zone finance ministers showed quite open to a referendum, the Federal Finance Minister Wolfgang Schäuble had the opportunity in May itself into game brought. However, the current aid program would need to be extended without an agreement by next weekend. The Euro Group apparently saw no way to do that. Now the second auxiliary program running as planned from next Tuesday.

On the same day, the Greek government has to some € 1.55 billion to the International Monetary Fund (IMF) transfer (see chart below), but has already stated that it can not pay that. Is that money is not a the IMF, Christine Lagarde Director could immediately notice the default. Maybe Greece would then announce the bankruptcy in a very short time.

Greece and Euro-group miss Trust

What will do the Euro-group, when the to accept Greek people in a referendum for the proposal of creditor institutions, Dijsselbloem answered first by saying he does not speculate. But then he sat by the Greek Government have destroyed over the years a lot of confidence. The euro zone finance ministers could simply not imagine that after a Yes vote in the government implementing a program from which they had advised against their people before.

Dijsselbloems colleague Giani Varoufakis explained it in the following press conference so : The Euro-group would have that night, had the Sunday and another night time, to revise the proposal so that the Greek government would ask the people to vote for it.

In fact, the negotiations also Friday night went to Dijsselbloems statement continued. The institutions have been working with representatives of the Greek government continued to compromise, said the euro group chief. After Greek Prime Minister Alexis Tsipras announced the referendum, the Greeks were, however, withdrawn from the negotiations -. Work on an agreement was terminated

The Monetary Community broken

Varoufakis turn accused the institutions no longer to be credible. Finally, five years did not result from auxiliary, reform and austerity measures mean that the Greek economy would recover. On the contrary, the recession has become sharper, increased unemployment and growing debt. The new proposal including holding the same measures would have led his country in this situation.

Now, the 18 euro-zone countries excluding Greece are composed on Saturday night, as Dijsselbloem said, and discuss how the “strength and credibility” of the monetary union can not be obtained. “We will do everything that is necessary.”

Details of the euro group chief did not go into, but it will be about how the consequences of the decision can be curbed for other euro countries. Capital controls can impose itself only the Greeks. Whether the Greek banks to the reported assault of citizens resist, is unclear.

The first Euro-group meeting without the euro member Greece has begun – the monetary union has been broken at least at this moment.