Greek crisis: surrender fiscal sovereignty in return for bailout, Merkel tells Tsipras

[Eugene]

Source: The Guardian

Greek crisis: surrender fiscal sovereignty in return for bailout, Merkel tells Tsipras

German and French leaders press Greek leader for guarantees over austerity
measures in what an EU official describes as ‘extensive mental waterboarding’

Ian Traynor and Jennifer Rankin in Brussels, and Helena Smith in Athens
Sunday 12 July 2015 20.23 BST

European leaders have confronted the Greek government with a draconian package of austerity measures entailing a surrender of fiscal sovereignty as the price of avoiding financial collapse and being ejected from the single currency bloc.

A weekend of high tension that threatened to break Europe in two climaxed on Sunday night at a summit of eurozone leaders in Brussels where the German chancellor, Angela Merkel, and President François Hollande of France presented Greece’s radical prime minister, Alexis Tsipras, with an ultimatum.

In what a senior EU official described as an “exercise in extensive mental waterboarding” to secure Greek acquiescence to talks on a third bailout in five years worth up to €86bn (£62bn), the two leaders pressed for absolute certainty from Tsipras that he would honour what was on offer.

Two days of high-stakes negotiations between the finance ministers of the currency bloc resulted in a four-page document that included controversial German elements leaked on Saturday. Those measures included Greece leaving the euro temporarily by taking a “time-out” from the currency bloc if it refuses terms for talks on the new bailout or, in the event of agreement, that Greece sets aside €50bn worth of assets as collateral for new loans and for eventual privatisation. Both passages, however, did not enjoy a consensus among eurozone leaders.

[font size=1]-snip-[/font]

Read more: http://www.theguardian.com/business/2015/jul/12/greek-crisis-surrender-fiscal-sovereignty-in-return-for-bailout-merkel-tells-tsipras

[PoliticAverse]

1. This is the part when the creditors try to put you into "receivership". n/t