Scoop: EC source tells FAZ 100% chance of Greek bailout deal

European Commission source states that the “green light” will definitely be given to Greek reforms

Greek Parliament approved proposals put forth by Prime Minister Alexis Tsipras that provide the basis for negotiations on a new bailout program. Tsipras said that lawmakers had a “strong mandate to complete the negotiations to reach an economically viable and socially fair agreement.” He acknowledged that the proposals were “far from our pledges” but “marginally better” than the proposals put forth by creditors prior to the referendum. He admitted that he had reached the “demarked line. From here on, there is a minefield and I don’t have the right to dismiss this or hide it from the Greek people,” he said.

10 of the SYRIZA party’s members defected in the vote, with two voting against the proposals and eight abstaining from the vote, including former finance minister Yanis Varoufakis.

The proposals go against the anti-austerity pledges of Tsipras’ election campaign as well as the reforms that 61% of Greeks had largely voted against on Sunday’s referendum.

EU sources state that a positive assessment has been given on the latest request for a third bailout to offer Greece a 53.5-billion-euro credit bailout along with some debt relief in the form of a 3-year loan package. There is a “100% chance” of a deal, says FAZ. The same report states points to scenarios that Greece would head to elections immediately after the deal is clinched.

SOURCE

And why not? Here’s the cost of Greek insolvency…

AGREEMENT

What they said:

French President Francois Hollande
“serious and credible” proposals

Eurogroup chief Jeroen Dijsselbloem
“thorough piece of text”

German Finance Ministry Spokesperson Martin Jager
“June proposals in new text”