Details are emerging from the new Greek proposal that was submitted earlier. They are asking for a 3 year program instead of 2 years. This would provide a longer horizon for recovery. It also includes promises about tax reforms, pension reforms and improving the private sector.
Full details will be submitted only tomorrow, July 9th and this raises the tension and weighs on the euro.
The ECB convenes later on to decide on a Greek request to enlarge the ELA just a bit, while capital controls remain in place and banks remain shut.
Perhaps Greece is taking its time with the details because of this meeting. Perhaps if there is an immediate rejection of the program, the ECB could decide to leave the cap unchanged for now. The ECB already hinted it is ready to pull the plug on Monday, if a deal isn’t reached on Sunday.
The Eurogroup Working Group (EWG) is working on the details instead of the Eurogroup.
The euro is sliding following the release of the details, but well within the range, currently at 1.1012.
The big sticking point is debt relief. We are still waiting for details about this topic.
Earlier today, there was a debate in the European Parliament which included a speech by Alexis Tsipras. He blamed previous governments’ corruption and also the bailout programs for Greece. He talked about reaching a European compromise.
More:Â Is Germany about to accept a big Greek debt restructuring? 5 Developments
more coming
