The latest news from Brussels includes a WSJ dispatch claiming that a German proposal, eyeing a five-year exit by Greece from the eurozone, may be included in a Eurogroup draft.

With a EU28 summit on Sunday now cancelled, all eyes are on a Eurozone summit, meaning national leaders and not finance ministers.

The Eurogroup draft was being prepared, with the proposal echoing German demands, particularly those of FinMin Wolfgang Schauble.

In the afternoon, two scenarios emerged on the “Greek issue”: a vote by the Greek parliament over additional measures demanded by creditors by Wednesday, in exchange for immediate funding, or … Grexit.
The earlier Eurogroup meeting lasted for two and a half hours, and by all accounts, included acrimonious debate.

Reuters
Earlier, Reuters reported that “hardliners” amongst Eurozone countries on the “Greek issue” want immediate legislation and implementation of laws for the further liberalization of the labor market in Greece as well as more pension reforms.

According to the news agency, the Eurogroup — EZ FinMins — still consider Athens’ last-minute package of proposals for a third bailout as a “good basis” for negotiations aiming for new proposals. Other demands ostensibly include further and complete IMF participation in any third bailout and other measures to free up ESM funding.

Other goals, according to the dispatch, is a primary budget surplus of 3.5% by 2018; implementation of the OECD’s so-called “tool kit”; pension cuts and the “zero deficit” clause for supplementary pension funds, as well as a wide array of changes in the labor market.
The Reuters article refers to “closed occupations”, allowing non-prescription drugs to be sold outside pharmacies, dairy sales regulations, Sunday shopping hours and even a new and improved framework of privatizations of state assets.

A Reuters timeline, in fact, gives the following breakdown since early Sunday, from first to most recent:

• EUROGROUP SEES GREECE FINANCING NEEDS 82-86 BLN EUROS, 7 BLN NEED BY JULY 20, 5 BLN BY MID-AUGUST -DRAFT SEEN BY REUTERS
• EUROGROUP SAYS “SERIOUS CONCERNS” ON GREECE DEBT SUSTAINABILITY, HAIRCUTS NOT POSSIBLE -DRAFT SENT TO LEADERS
• ESM PROGRAMME FOR GREECE WOULD INCLUDE 10-25 BLN EUROS FOR BANK CAPITAL, INCLUDING 10 BLN AVAILABLE IMMEDIATELY -DRAFT
• IMF INVOLVEMENT IS A CONDITION FOR GREECE TO SECURE EURO ZONE BAILOUT -DRAFT
• GREECE TO PASS LAWS BY WEDNESDAY STREAMLINING VAT AND BROADENING THE TAX BASE AND REFORMING PENSIONS -EUROGROUP DRAFT