Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
Is Greece waving the white flag?
After finally defaulting on its payments to the IMF, reports are circulating that Greece has agreed to most of creditors' demands. So is the crisis over? Matthew Partridge investigates.
As a result, Greek went into default, becoming the first developed country in history to default (or technically go into arrears on) an IMF loan.
However, this morning the Greek PM shocked commentators by sending a letter to the "Eurogroup", stating that Greece was prepared to accept the terms of the deal offered on Sunday, which itself was based on the offer on Friday, with only a few minor changes.
Are there any strings attached?
Yesterday, the European Commission reportedly promised that a conference on debt relief (one of the key European demands) would be held in October, if Greece accepted the deal. It is not known whether this is still on the table, or if it was ever part of an offer, and it is not mentioned in the letter.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
The main sticking point seems to be that they will not talk to Greece until the referendum has either been cancelled or resulted in a victory for the "Yes" camp.
While Germany has indicated a preference for the latter, cancelling the referendum may be the politically easiest option for him. Criticism from the Council of Europe that there isn't enough time to properly consult Greek voters may also provide asmokescreenfor a cancellation.
What about Tsipras's own party?
While there is still a chance that parliament could reject the deal, Tsipras should be able to win enough support from the other parties. However, if he doesn't win enough concessions on debt relief, or the economy doesn't start to radically pick up, his positioncould become untenable.
Sign up for MoneyWeek's newsletters
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
