LIVE: Eurozone leaders reach agreement with Greece

European Council President announced that a deal has been reached for a new bailout programme for Greece

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

15:00 GMT: IMF releases statement. "The IMF stands ready to work with the Greek authorities and the European partners to help move this important effort forward."

14:22 GMT: Greek ruling party Syriza parliamentary group will hold a meeting to discuss the deal tommorow at 8 a.m. local time (05:00 GMT).

14:01 GMT: European Central Bank says ELA (Emergency Liquidity Assistance) will be immutable for Greek banks.

13:30 GMT: Finnish finance minister Alexander Stubb tweets notifying of the start of a eurogroup meeting of EU finance ministers to outline the details of the deal with Greece. 

 By July 22, the Greek parliament has to implement the following:
• Adoption of recovery of banks Directive (BRRD) within one week with the support of the European Commission, after which the Greek government has to:
• Further pension reforms and appliance of zero deficit clause equivalent measures until October 2015.
• Organisation for Economic Co-operation and Development – OECD including markets to be open on Sundays, pharmacies’ licence, milk as well as bakeries’ operation and amongst others the opening of closed proffessions.
• Opening of energy market, privitisation of Independent Power Transmission Operator S.A. (ADMIE) or some similar measures that will take place following the agreement with the institutions.
• In terms of working measures: modernisation of collective bargaining.

13:11 GMT: Greek opposition New Democracy party leader Evangelos Meimarakis tells Greek website News247 the deal has allowed Greece to take a "breather" and that the country will once again attempt to "find its footing" in Europe.

"Unfortunately, at the last minute, we had only a choice of agreement or no agreement that would have led to total disaster", he said.

11:35 GMT: British Prime Minister David Cameron's spokeswoman makes a statement expressing Cameron's pleasure on the agreement. "Clearly the challenge now will be on delivering on that and the implementation which lies ahead ... and I don't think we underestimate the size of that challenge," she said. "We are glad an agreement has been reached but there is still more to do."

11:28 GMT: Eurogroup head Jeroen Dijsselbloem says he does not have an "easy solution," but the Eurogroup "will look into it" this afternoon. "It is of course very difficult to get financing if there is not yet a deal."

10:23 GMT: Italian Prime Minister Matteo Renzi says that the deal between Greece and lenders is "useful," adding "we must go back to Europe's ideals."

10:05 GMT: Greek PM Alexis Tsipras will meet with his Minister of National Defence and head of the coalition government's junior partner Indepedent Greeks (ANEL) Panos Kammenos this afternoon.

In a tweet shared shortly after the deal was announced, Kammenos said "Only if we stand up to fate we will kill...death."

08:39 GMT: Guy Verhofstadt, the President of the Alliance of Liberals and Democrats for Europe, says the Greek crisis shows that a currency union without a political union cannot be sustained.

08:00 GMT: French president Francois Hollande says Greek Prime Minister Alexis Tsipras "made a very courageous choice, he asked for other reforms but at the same time he knew this was the only way to get this €80 billion of financing."

“There was a moment we were afraid that Europe will lose one of its members,” he added.

07:57 GMT: Greek ruling party Syriza's UK spokesperson Marina Prentoulis reacts to the deal saying, "We fought a tough battle. We face difficult decisions."

"We took the responsibility for the decision to avert the most extreme plans by conservative circles in Europe. We managed to restructure debt and secure medium term financing. Greece will continue the fight to be able to return to growth."

"We have ten thousand people committing suicide for economic problems; we have 60 percent of the young people unemployed, 27 percent of the overall population unemployed, the debt growing and the Greek economy being reduced by one fourth."

"Now, with these measures, I'm really worried what will happen. It has been clear that for political reasons they have been pressured into a very difficult deal and across Europe, what everybody says is that we're talking about a coup."

07:55 GMT: Greek Prime Minister Alexis Tsipras welcomes the deal saying, "We averted the plan of a financial choking and banking system collapse."

"We sent a message of dignity to all of Europe."

"Growth package of €35bn and debt restructuring will make markets understand that Grexit is a thing of the past."

07:30 GMT: European Commission president Jean-Claude Juncker says, "I'm convinced the Greek government will be able to pass through the decision made today."

"There are no winners or losers, I don't think the Greek people have been humiliated and I don't think other European countries have lost face."

07:27 GMT: German Chancellor Angela Merkel asks for the prerequesites of the deal to remain in place until July 15. Significant reforms will include changes in the pension system, the job market and privitisations.

"What happens in Greece, has to be in line with what happened with bailouts in previous countries,” she said. “I think trust can be regained.”

“I have demonstrated that the proposals are in line with the programmes that we have implemented in other countries. We do not make any exceptions for Greece, apart from the banks issue that were found in a difficult situation comparting to the past."

07:19 GMT:  Eurogroup leader Jeroen Dijsselbloem says, "Trust was a very key issue, we looked at reforms, debts, financials needs. We were able to agree on all these issues to get Greece back on track."

"The Greek parliament will legislate very quickly on a number issues, which will help bring back trust to member states. There is agreement that Greek reforms need to be strengthened sooner.

"Assets will be transferred to a fund to be set up. The fund will monetise them by privatisation or running them. It will be used to help recapitalise banks."

"Once the €25bn needed for recapitalisation is repaid, the remaining funds will be used to bring down debt by 50% and the other 50% for the Greek government to reinvest into Greece."

07:17 GMT: IMF chief Christine Lagarde makes statement after neagotiations: "It's been a laborious night, but I think it's a good step to rebuild confidence, and there will be many more steps, I'm sure, that will only be demonstrated by the implementation of what has been agreed now."

06:55 GMT: Eurozone leaders reached a unanimous agreement after night-long talks in Brussels to move forward with a bailout loan for Greece, European Council President Donald Tusk said on Monday.

"Euro summit has unanimously reached agreement. All ready to go for ESM programme for Greece with serious reforms and financial support," Tusk tweeted.

Measures that Greece has to fulfill before July 15 for deal to proceed:

• VAT measures 
• Measures for pension/insurance system
• Strengthening the independence of the Greek Statistical Authority
• Reforms that will lead to semi-automatic government public spending cuts in case the government fails to achieve budgetary surpluses.