All the latest economic and financial news, including developments around Greece’s increasingly fraught bailout talks
Introduction: Another week of Greek drama ahead
FT: Varoufakis being sidelined
Yanis Varoufakis is making headlines today, but not in the way he’d like:
Everything going well then pic.twitter.com/qA5uzhI7Wc
Greek worries are pushing Europe’s stock markets down in early trading, with France’s CAC index losing 1%:
Proposals from Greece do not include important issues such as pension cuts and labour market reforms and are not something the creditors will be able to stomach.”
Lots of chatter about Greece this morning:
#EU hopes to sideline #Greece finance minister and deal directly with PM. Little progress made on bailout, some big repayments due in weeks
Greece to find ways to assemble enough cash to pay pensioners and employees, after euro ministers say no more aid until bailout terms met
#Greece | Brussels Group to hold conference call later today in a revived effort to bridge gap in Greek bailout talks.
A German government spokesman has confirmed reports that chancellor Merkel spoke with the Greek prime minister by phone yesterday.
“expressed their common will for a steady communication throughout the course of negotiations in order to have a mutually beneficial solution soon”
The Financial Times is also reporting that Yanis Varoufakis is being sidelined, after last Friday’s “highly critical” eurogroup meeting:
Greece’s dire financial position is forcing eurozone authorities to look beyond Mr Varoufakis to Alexis Tsipras, prime minister, much like in February when Jeroen Dijsselbloem, the Dutch finance minister who chairs the eurogroup, brokered an extension of the current bailout programme.
According to two eurozone officials, Mr Dijsselbloem phoned Mr Tsipras from Riga in an effort to mend fences after Friday’s feisty eurogroup meeting, where Mr Varoufakis was rounded on by his eurozone colleagues.
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It looks like another week dominated by Greece’s debt crisis.
“He is completely isolated,” a senior euro zone official told Reuters on condition of anonymity.
“He didn’t even come to the dinner to represent his country,” the official said of the event where ministers, serenaded by a Latvian choir, ate salmon and sea bass.
FDR, 1936: “They are unanimous in their hate for me; and I welcome their hatred.” A quotation close to my heart (& reality) these days
Related: Greek finance minister hints at strained EU relations: ‘I welcome their hatred’
Greece has moved somewhat closer to a technical default after the weekend’s antics, although it seems the majority of Europe’s finance ministers have had about as much as they can take of the Greek finance minister Yanis Varoufakis and will look to deal directly with top dog Alexis Tsipras from here on in.