European Commission publishes what it claims would have been a comprehensive agreement as Greece stands on financial precipice

28th June 2015


The European Commission has published the last set of proposals agreed by the Troika of creditors and offered to Greece late last week saying that it could have led to a comprehensive agreement before the Greek government walked away from the negotiations.

The Commission says it would have addressed future financial stability needs including a jobs programme but was rejected by the Greek Government. The Greek Prime Minister Alex Tsipras had asked for an extension of financial help until a referendum can be held on Thursday. But this was rejected by EU finance ministers late on Saturday.

The European Central Bank says it will not provide additional aid beyond the £63bn already promised to Greek banks which may result in them being closed banks early in the week with a likely imposition of capital controls.

In a statement on its website, the EC writes: “In the interest of transparency and for the information of the Greek people, the European Commission is publishing the latest proposals agreed among the three institutions (European Commission, European Central Bank and International Monetary Fund), which take into account the proposals of the Greek authorities of 8, 14, 22 and 25 June 2015 as well as the talks at political and technical level throughout the week.

“Discussions on this text were ongoing with the Greek authorities on Friday night in view of the Eurogroup of 27 June 2015. The understanding of all parties involved was that this Eurogroup meeting should achieve a comprehensive deal for Greece, one that would have included not just the measures to be jointly agreed, but would also have addressed future financing needs and the sustainability of the Greek debt. It also included support for a Commission-led package for a new start for jobs and growth in Greece, boosting recovery of and investment in the real economy, which was discussed and endorsed by the College of Commissioners on Wednesday 24 June 2015.

“However, neither this latest version of the document, nor an outline of a comprehensive deal could be formally finalised and presented to the Eurogroup due to the unilateral decision of the Greek authorities to abandon the process on the evening of 26 June 2015”.

The statement says: “Given the current circumstances, the Governing Council decided to maintain the ceiling to the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015)”.

The ECB says that it is prepared to review the decision on its Emergency Liquidity Assistance (ELA) depending on developments and would work closely with the Bank of Greece.

The current ceiling for ELA, agreed on Friday, is €89bn (£63bn). It is not clear if all that money has been disbursed.

The ECB statement quotes Bank of Greece Governor Yannis Stournaras saying: “The Bank of Greece, as a member of the eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”

The statement comes after eurozone finance minsters on Saturday refused a Greek request to extend Greece’s current bailout.

The bailout expires on Tuesday, the same day that Greece has to make a payment of €1.5bn (£1.1bn) to the International Monetary Fund (IMF) that it risks defaulting on.

Greek Finance Minister Yanis Varoufakis published the following statement on Friday. He says: “The Eurogroup Meeting of 27th June 2015 will not go down as a proud moment in Europe’s history. Ministers turned down the Greek government’s request that the Greek people should be granted a single week during which to deliver a Yes or No answer to the institutions’ proposals — proposals crucial for Greece’s future in the Eurozone. The very idea that a government would consult its people on a problematic proposal put to it by the institutions was treated with incomprehension and often with disdain bordering on contempt.

“I was even asked: “How do you expect common people to understand such complex issues?” Indeed, democracy did not have a good day in yesterday’s Eurogroup meeting! But nor did European institutions. After our request was rejected, the Eurogroup President broke with the convention of unanimity (issuing a statement without my consent) and even took the dubious decision to convene a follow up meeting without the Greek minister, ostensibly to discuss the “next steps.”

12 thoughts on “European Commission publishes what it claims would have been a comprehensive agreement as Greece stands on financial precipice”

  1. Michael Mixalis says:

    Under what authority has Mr. Dijsselbloem excluded Greece from participation to the 27 June 2015 Eurogroup meeting? As per EU Treaty “no member of the Eurogroup can be excluded from participation in the meetings” (EU Parliament, NA0113090ENC_002). Is Greece not still a full and equal member of the Euro group? Also according to Article 1 of the EU Protocol on the Euro group “ALL the Ministers of the Member States whose currency is the euro shall meet informally….. The European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of ALL Ministers with responsibility for finance of ALL Member States whose currency is the euro and of the Commission” (Lex Europa, EN/TXT). Also, the Protocol states that “no Euro group decision is valid if it does bear the signature of ALL member states” (Lex Europa, EN/TXT). Under what regulation the decision to end Greece’s bailout program on 30 June 2015 is taken when the signature of ALL member states are not in the document? Is Mr. Dijsselbloem a dictator in the Euro group? These are some serious questions regarding the functions of the Euro group and should alarm any European Union citizen as to severe violation of principles of democratic and equal representation and the right to sign granted by the EU Treaty to ALL member states. In the next few days Greece reserves the right granted to it by the EU Treaty of Amsterdam to report the decision as non-valid and Mr. Dijsselbloem for improper behaviour and disregard of duty, requesting the EU Institutions to take disciplinary action as per EU Legislation. Also, regarding Mr. Dijsselbloem humorous statement that Prof. Dr. Yanis Varoufakis does not fit in the meeting cause he does not wear a tie and he is “punk”, as long as I know from my personal experience in The University of Glasgow, not even the Vice-Chancellor wears a tie. Should we consider him a “punk” as well Mr. Dijsselbloem? Oh what a laugh ! Thanks and a very good day to all good friends. Cheers to all !

    1. David Lilley says:

      Michael Mixalis
      You are of course aware that the Greek delegation walked out of the meeting on Friday and flew home to report to parliament and use the “R” word (referendum).
      The agenda for the Saturday meeting was what to do now that the Greek delegation has left and used the “R” word. It was business for the remaining 27 not the 28.
      George P had previously used the “R” word and we all know what it means. “A previous Greek government has signed an agreement with the Troika but a new democratically elected government or a referendum can supersede that agreement and therefore we don’t have to repay our kind neighbours who helped us in our hour of need”.
      Surely, you would agree, it is time for those neighbours to meet and decide what to do about number 28 who has just walked out.

      1. Jive Bunny says:

        David, Michaels argument is clear, there is no provision in the EU constitution for a decision to be made and implemented that does not bear the signatures of all member states.

        This renders any decision emanating from the Saturday meeting void, so it was a waste of time. Any decision made at that meeting can be overturned as being unconstitutional as it does not bear all member state signatures.

        It calls into question the alleged “intelligence” of the EU ministers in signing up to such a constitution originally, but there it is, as large as life and it can only be changed by UNANIMOUS AGREEMENT. ASgain I cite you TRUE DEMOCRACY.

    2. David Lilley says:

      Michael Mixalis
      A quick lesson about democracy and capitalism.
      We all know about democracy. Its the will of the people, voting, elections and referendum.
      Wrong. These things are present in parliamentary democracies but they are also present in totalitarian regimes. The technical term for this idea of democracy is “vulgar democracy”.
      Your vote is bad news if you are ill-informed, referendums are bad news for parliamentary democracy and the will of the people can be very bad news for minorities.
      Why do the Greeks always cite vulgar democracy? The concept of democracy that enabled Plato to make a great case against democracy and a great case for guardian rule, totalitarianism.
      The most important characteristics of parliamentary democracy are freedom of thought, freedom of speech and debate and scrutiny. The end result is that the best argument can be made, aired, hear and acted upon. The western democracies trump the totalitarian vulgar democracies in their delivery of health, wealth and happiness due to the success of the birth and life of the best argument.
      But it is even bigger than that. Man only has two generic questions; facts and values. We have answered the facts question with science working to the rules imposed on it by epistemology (the biggest question in philosophy and now solved). And we have now solved the values problem. We make our moral decisions as we go via parliamentary democracy where the best argument eventually wins.
      We don’t turn to ancient text, the greatest happiness principal or the categorical imperative. We allow the best argument to fly.
      Goodbye vulgar democracy. The Greeks are only calling upon it to avoid paying their debts.
      And as to capitalism. It was killed off even before Marx wrote about it. We live in a “mixed economy” otherwise known as “state interventionism” where the capitalist is the underdog.

      1. Jive Bunny says:

        “Why do the Greeks always cite vulgar democracy?”

        Varoufakis has already answered you David – ” a government would consult its people on a problematic proposal”

        This was a “one off” consultation because the proposal went against the platform on which Syriza was elected, therefore Syriza held no democratic mandate to accept the proposal. It’s called TRUE DEMOCRACY.

        You , I or any number of others mat be unhappy at the suspected outcome of such a referendum but that is no reason to suffocate democracy.

        1. David Lilley says:


          It is always good to hear your excellent responses. I did read the IMF report that you referenced on their misjudgement of the multiplier. It was general and not specific to Greece. It was an honest mistake on their part and admitted.

          I tend to be technical, non-judgemental and always looking for the best solution. The best argument.

          I come to this party as one who writes about democracy and makes the case that parliamentary democracy is the answer to man’s second biggest question, the value question.

          “Vulgar” is a technical term. A “vulgar Marxist”, for example, is someone who doesn’t know anything about Marx’s theories but is 100% Marxist and out there with the 99% lot (home every night to feed the cat and watch telly, no self-immolation in sight, surrounded by cafes and fast food outlets with near 100% guest worker staff, work that they turned down as they preferred benefits, and city workers putting in 15 hour days including travel).
          I must insist on labelling your “True democracy” (a Platonic term from the hater of democracy) “vulgar democracy”. We all know what the “R” word means. Referendums have no place in parliamentary democracy.

          I also come to the party for the sake of the victims of successive Greek government incompetence and corruption. For example, 63% of Greek graduates are unemployed.

          How can you mention Varoufakis name? Twice the EU have declared that he and the Greek PM are lying to the Greek parliament and citizens. At no time have the Troika insisted on raising VAT on electricity and medicines nor insisted on reducing pensions or public sector wages.

          We had the Communist Party of GB until the peasant president, Khrushchev, wrote his autobiography in 1967. It cannot have been translated into French, Italian and Greek. And of course it isn’t on the reading list of the 99% folk. Can they read? Well maybe how to fill in their benefit claims forms.
          I have watched the Bob Diamond interrogation by the finance select committee three times and never seen any fault with the integrity or his responses. He volunteered to attend. Total integrity in the face of venomous questioning. Surely you are bigger than the anti-banker mob.
          Jive. Lets get to the bottom of this. Come back to me.

          1. Jive Bunny says:

            Hi David, regardless of whether a mistake is general it still affects specific people/parts/countries specifically.

            I do not agree your re definition of “True Democracy” , you miss what I said which was that is a one off referendum as the party have no legal mandate to increase austerity. In a false democracy (such as the UK) parties happily break manifesto promises on big issues which were the basis of their election, thereby denying voters delivery and implementation of policies they voted for. Syriza is clearly above this and will not carry out actions which conflict with the manifesto on which they were elected unless they receive a clear change of direction instruction from the electorate.

            I have read the EC’s alleged “clarification” document and have no bette runderstanding than before I started it, neither can anyone else unless they know the intricacies of Greek Government. THe statement of 13% VAT on food and energy fails to make clear if this is a new tax, increase or reduction, the same applies to “reform of the unified wage grid… a fiscally neutral manner”. Neither or I know exactly what that means and how it will practically affect Greeks and so neither of us are in a position to form a valid opinion on the veracity of the EU’s allegations of “lying”. If you feel you can demonstrate the effects via a description of the current system of VAT and public salaries and then describe how these actions will be taken, which groups will be affected, how they will be affected and to what degree they will be affected, then I will listen carefully.

            You never found fault with Bob Diamond’s responses!!! His whole defence was “It’s not me guv, it was them dodgy day traders on the dealing desk that I was tasked to supervise , I didn’t know what they were doing”. If he was unaware of what they were doing then EXACTLY WHAT WAS HE DOING? CERTAINLY NOT HIS JOB!!!

            It matters not if you stand alone or in a mob, you should always follow your own voice. For my part I am generally considered a perverse and argumentative person – whatever. I follow my own independent voice which on this issue happens to be echoed by many others. I am not sure I was ever “with” anyone??

          2. David Lilley says:

            This isn’t your usual well argued comeback.
            Twice the EU have made public that the Greek PM and his finance minister are not telling the truth to their parliament and people. The first time, some three weeks ago, to point out that the troika have never asked for increases on VAT on medicines and electricity. The second time, three days ago, to point out that their conditions do not include pension reduction and public sector wage reduction.
            The EU have taken the unusual step of making public their full proposals such that the Greek people have something reliable to understand about their proposals. The truth.
            David Cameron repeated states that this, the manifesto, is what we are implementing. The Lib-Dems had to sacrifice their manifesto pledge to kill tuition fees in their discussions to form a coalition government. The coalition would govern and not the Lib-Dem manifesto.
            Bob Diamond, who has contributed more to the NHS than anyone, responded to the select committee that he immediately sacked the traders responsible for the Libor fraud. And that in due course we would discover that other banks were the bigger criminals. History has proved him correct.
            If you want to know about democracy, the only system that is not tyranny, then you should read Popper’s “Open Society”. Popper solved man’s biggest problem, the facts problem, but he also destroyed Marxism.
            You may follow your own voice. You have been given the freedom to do whatever you like as long as you don’t break the law (Mill). You are also free to change any law. You just need the best argument. You have the tools necessary, freedom of thought and freedom of speech.
            The status quo got there by winning the argument. The status quo is always up for grabs. You only have to have a better argument.
            Parliamentary democracy doesn’t give a monkies in what you believe, “your own voice”, your subjective knowledge (opinion). You have to have the best argument to get your proposals though parliamentary debate and scrutiny.
            Long live respect for the best argument. The system we have in place.
            Nice to argue. What else is there?

          3. Jive Bunny says:

            David, the argument is sound.That the Troika say they’re not asking for a VAT increase does not make it true unless you blindly accept everything they say as divine truth!! I note the Greeks have not contradicted them on this so maybe you’re right. There is no way the troika can have the detailed knowledge of the Greek pension and public sector pay system to make a VALID statement that they are not requiring a cut in pensions etc and the “document” is very vague.

            The Troika would have to defer to the Greeks (who DO have the detailed knowledge of the system they designed) as to the actual implications of their suggestions and the Greek authorities are clear – the result will be public sector and pension pay cuts!!

            You are right about the Lib-Dems sacrificing tuition fees, so they obtained power and then FAILED TO IMPLEMENT THOSE POLICIES ON WHICH THEY WERE ELECTED. If this isn’t false democracy I don’t know what is. The only consolation was that he electorate showed what they thought of that move 5 years later!!Unfortunately the Lib-Dems had 5 years to help implement a host of other decisions that the Lib Dem voters didn’t agree with by that time!!

            Diamond sacked the Traders when he saw the game was up, conveniently “forgetting” to report their wrongdoing to the authorities!! Often times it is what you don’t do/say as much as what you do.

            I know of Popper, he didn’t destroy Marxism (not that I’m a Marxist) he simply disagreed with the idea of violent struggle which Marx thought had to happen to overthrow the bourgeoisie. He was equally unhappy with Democracy as it gave rise to dominating Facism in Nazi Germany , in your terms, he destroyed Democracy too!!

            Your best friends are evidence and facts with argument following a long way behind.

            I have come across too many people who think they can blag their way out of anything by lying and lying (Bob Diamond). Your argument should be evidence and fact based not simply your thoughts at that time. Unfortunately the political establishment don’t like facts as they tend to get in the way of political dogma and politicians prefer to argue with little, no, or very vague reference to facts (the EC’s “paper”) that way they can’t be caught out in a lie or be shown to not know what they’re doing. The problem with this(your )approach is that there is no universally shared clear idea of exactly what is supposed to be happening.

          4. David Lilley says:

            We cannot go on forever with this.
            Excellent that you have heard of Popper. The man who solved the biggest question in philosophy (epistemology), destroyed “historicism” (Hegel, Marx and others), gave a robust defence of the “Open Society” (democracy) and gave full support to Tarski’s logical definition of truth (an argument, hypothesis is true if it corresponds with the facts/evidence).
            Greek GDP would increase 8-10% at a stroke if corruption were eliminated. Greek tax take would increase by 22% at a stroke if 22% of the economy wasn’t black market. Greece is bankrupt for want of competent government.

          5. Jive Bunny says:

            David, my final comment on this is: I reject SOME of your conclusions on what Popper achieved but can agree with ALL of your statements in your last post on Greece, until the next time….

      2. Jive Bunny says:

        “”state interventionism” where the capitalist is the underdog” – why are the banks still in control then?

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