Finland’s parliament in favour of forcing Greece out of the euro, says report

MPs will not accept any new bailout deal for Greece, public broadcaster Yle says, meaning ministers’ hands are tied in crunch Brussels negotiations

Finland’s parliament has decided it will not accept any new bailout deal for Greece, media reports said Saturday, piling on pressure as eurozone finance ministers tried to find a way out of the impasse.

The decision to push for a so-called “Grexit” came after the eurosceptic Finns party, the second-largest in parliament, threatened to bring down the government if it backed another rescue deal for Greece, according to public broadcaster Yle.

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Greek debt crisis: Eurozone finance ministers fail to reach agreement – as it happened

Finance ministers will resume talks on Sunday morning after failing to reach agreement tonight on Greece’s request for a third bailout

Summary: Another failed meetingIt’s still very difficult, says eurogroup chiefItaly to tell Germany ‘enough is enough’
German paper suggests ‘temporary Grexit’ (experts say it’s daft)
Finnish government might collapse over Greek bailoutMinister: Syriza rebels should resign
Photos: Inside the eurogroup meeting

12.32am BST

“These proposals cannot build the basis for a completely new, three-year [bailout] programme, as requested by Greece.”

Related: Greece nears euro exit as bailout talks break up without agreement

see you tomorrow #Greece #ohnoooo pic.twitter.com/oL2NVGNQqS

12.26am BST

The message from Greece tonight – don’t blame us, we’re doing our best:

Greek gov source on Eurogroup: It’s clear that certain countries, for reasons unrelated to reforms+program, don’t want there to be agreement

12.23am BST

European solidarity, eh?

“Even if #Tsakalotos chopped down his arm, #Schaeuble would say it’s not enough”. Words of a European official for today’s #Eurogroup

12.07am BST

If eurozone finance ministers cannot reach a deal on Sunday morning, they will pass the hot potato onto the 28 leaders of EU countries in the afternoon:

Another crack tomorrow at 11am, and if they can’t do it, then it gets booted upstairs to the leaders. And that is when the fun really begins

Full #EUCO still on for 6pm CET tomorrow, says EU source – for now.

11.56pm BST

The FT’s Duncan Robinson confirms that the eurogroup is far from a deal.

Despite the public optimism, officials from both camps are frustrated. “Not very” close to agreement seems to be the summary. #eurogroup

11.54pm BST

Spain’s Luis de Guindos spoke to the media before hotfooting it into the darkness.

I asked Spain’s FINMIN De Guindos if he’s optimist: We’re going to try till the end (Meeting) Could have been better, but also worse #Greece

11.51pm BST

I missed Christine Lagarde’s departure, but a replay shows that the IMF chief only gave a wave to the cameras.

11.46pm BST

The Greek fin min @tsakalotos leaving the #EU building Lex after a hard day. Photo credits @ArisoikoPhoto pic.twitter.com/IzfXmEPwQ4

11.34pm BST

11.32pm BST

Here comes Euclid Tsakalotos…..and there goes Euclid Tsakalotos!

Greece’s finance minister exited the building at a marching pace, mobile phone glued to his ear, deep in conversation. Not a word for the press, alas.

11.30pm BST

Here’s a video clip of Pierre Moscovici’s comments tonight:

#Eurogroup Doorstep European Commissioner @pierremoscovici I always keep my hope #Greece http://t.co/CPqacZODFZ pic.twitter.com/3dvNujme73

11.28pm BST

Some ministers are walking past the media and refusing to speak, including Ireland’s Michael Noonan. I guess they’ve got nothing encouraging to say.

Mario Draghi just got into a car without comment.

11.25pm BST

11.24pm BST

Here comes Pierre Moscovici….and actually he (for once) doesn’t look too upbeat.

He tells reporters (in French) that there is always hope.

#Moscovici: “I always keep hope”. Doesn’t sound so optimistic. #Eurogroup

#Eurogpoup there’s always tommorow, there’s always hope, says Pier Moscovici, leaving Eurozone Finance Ministers’ 9-hour meeting

11.20pm BST

Michel Sapin’s optimism is unquenchable!

French finance minister asked if he is still optimistic as he leaves. “Always!” #Greece

11.20pm BST

Finland’s Alex Stubb told reporters that tonight’s meeting made ‘good progress’

RTRS – EUROGROUP “MAKING GOOD PROGRESS” ON GREECE -FINLAND’S STUBB

11.18pm BST

Jerosn Dijsselbloem, head of the eurogroup, is speaking now at the exit.

He confirms that the meeting is adjourned until 11am tomorrow morning.

We have had an in-depth discussion of the Greek proposals. The issue of credibility and trust was discussed, and also of course the financial issues involved.

It is still very difficult, but work is still in progress.

11.13pm BST

#eurogroup now very badly split. getting nasty. could be rowdy summit sunday. renzi to round on merkel, enough humiliation. and hollande?

11.12pm BST

It does NOT look good, I’m afraid.

“Is it a yes or a no,” the Slovakian finmin @KazimirPeter is asked as he leaves. “No is the better answer,” he replies #Greece

11.12pm BST

Eurozone ministers are being collared as they leave the meeting – here’s a live feed.

11.08pm BST

Ian adds that there won’t be a press conference tonight. No statement either. We’re basically in limbo until the morning.

Eurogroup breaks up with no joint statement. To continue at noon Greek time on Sunday #Greece #Eurogroup

11.07pm BST

Ian confirms that the eurogroup is breaking up, to resume in the morning

#eurogroup over at midnight. till 11 tomorrow. no statement agreed for summit. yet

11.05pm BST

Eurogroup ministers are going to resume talks in 11 hours time:

#Eurogroup tomorrow at 11 in the morning.

11.05pm BST

The prime minister of Malta has tweeted that the eurogroup meeting failed to reach an agreement (as had become clear in recent hours)

Briefed about inconclusive #Eurogroup meeting. It will be a long day -JM

11.01pm BST

The Eurogroup meeting is over! Until the morning……

End of #Eurogroup session. To be continued tomorrow.

10.55pm BST

The 9th hour of Eurogroup meeting starting soon. Works on final statement not finished untill 2-3 am… pic.twitter.com/QJSjMBLDnX

10.34pm BST

The Finns really have put a spanner in the works, by the sound of it:

EG drafting session with two options. One with the finns, one without. Last word to the leaders, tomorrow (source with a tie) @la_stampa

10.27pm BST

Hopes of an early finish are being trampled into the carpet. The Brussels press pack are heading that the eurogroup may run for another three hours.

How are things going at Eurogroup? “No way near the end”, apparently.

Final Eurogroup statement not expected until 2-3am – source.

10.24pm BST

Here’s something to chew on. A eurozone bailout, as Jennifer flagged up earlier, only needs 85% support if the situation is an emergency.

But some country’s have rather more muscle than others, reflecting their financial contribution to bailout funds. Many of the smaller countries only have a tiny share of the vote.

Thanks to an obscure legal clause, ESM can agree a bailout with 85% of votes, not unanimity. These are voting rights: pic.twitter.com/Yfqp8T60Jn

10.09pm BST

It’s 23.00 in Brussels. Eurogroup meeting started 8 hours ago. As far as I know, very little improvement. Very little optimism.

9.55pm BST

So much for finishing at 10pm Brussels time…..

#eurogroup still working on the common statement.

9.54pm BST

9.39pm BST

Tomorrow, Italy is reportedly going to demand that Germany hammers out an agreement with Greece, our datablog editor, Alberto Nardelli, hears tonight.

Italian prime minister Matteo Renzi has had enough, Alberto understands. It’s time to stop humiliating Greece, and end this crisis.

Hearing Italy to tell Germany: “enough is enough” – we need to stop humiliating Greece, and find a deal and common ground for good of EU

9.32pm BST

Back in Greece, economy minister George Stathakis has warned that the country could face some capital controls all though the summer.

Reuters has the details:

Stathakis told Greece’s Mega TV that the banks could reopen as soon as next week, if an agreement with creditors is reached this weekend, but other restrictions on withdrawals and currency exports would remain in place for most.

“That will stay in play for two months or some months,” he said.

9.29pm BST

This appears to be the German finance ministry’s paper, which suggests Greece could be offered a ‘temporary’ exit from the eurozone.

Here’s the Sch

George Osborne is the master of all he surveys… except the economy | Andrew Rawnsley

The chancellor delivered a budgetary masterclass in how to dish your opponents and discomfit your rivals

The envy of rivals is the highest compliment that is paid to political success. Since George Osborne delivered his budget to a rapturous reception from Tory MPs, Boris Johnson has been wearing the tortured smile of a man who has swallowed a wasp and is trying to look happy about it. He was compelled to laugh along when he was the butt of a joke in the chancellor’s speech. He had to pretend to approve when a national living wage, one of his pet causes, was appropriated by his competitor for the Tory crown, as the chancellor sought to divert attention from the scythe he was taking to in-work benefits. Overall, the backbencher for Uxbridge and the rest of the Tory party were given a masterclass in what a powerful chancellor can do to disorient his external opponents, eclipse his internal enemies, set the political weather and promote himself.

Interestingly, the green-eyed monster can also be glimpsed at Number 10. Friends of the prime minister sound a little put out that so many plaudits have been showered on the next-door neighbour. They want to establish some ownership of the budget for the prime minister. One of his allies is keen for it to be known that “they built it together from the ground up”. David Cameron may also be getting irritated when he hears people say – and this is often said by ministers – that the next-door neighbour is the most powerful man in government.

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Why the eurozone crisis is just part of our long struggle for peace | Mark Mazower

After two world wars, a mere currency must not be allowed to derail a grand European project that has been decades in the making

The seemingly endless eurozone crisis is coming to a head, but it won’t be completely over in the near future. In the meantime, it has unquestionably precipitated the most serious challenge to the idea of a unified Europe since the Second World War. The common currency, which was dreamed up to drive integration forward, has become a source of strain that threatens to tear apart the eurogroup and mortally weaken the EU itself. It is therefore not surprising that many people see this – for good or bad – as an existential struggle for the soul of Europe.

Whatever happens with Greece, the way its debt has been fought over during the past five years has revealed the shallowness of any sense of political solidarity across the continent and the limited legitimacy of the EU’s political institutions. The Greeks complain about German meanness, the Germans about Greek profligacy; the French and Italians are driven by the worry that if Greece goes they may be next; while across eastern Europe people are asking why their money should go to prop up a standard of living in Athens that remains several notches higher than their own.

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Better to inherit a home than start a business in Osborne.uk | Will Hutton

The chancellor of the exchequer claims he wants to double exports by 2020, but his budget gives little indication as to how that might happen

Incomes per head in the west have grown by broadly 40 times over the past 250 years. Economic historians compete with each other for explanations, though none but the very idiosyncratic argues that the key determinant was tight control of the national debt . Rather, the driver is a combination of institutions, rule of law and competition that best fosters human beings exploiting the astonishing and unfolding fruits of science, technology, ingenuity and innovation.

In this context, George Osborne’s simultaneously much lauded and deplored “big budget” last week is largely irrelevant, if not actively unhelpful. His book-keeper’s obsession with boxing the economy and society into whatever shape will best deliver a budget surplus by the end of the decade while preserving as much party advantage as possible will damage the country he purports to serve. Lower tax and lower welfare may be desirable for ideological purposes, but any linkage they may have with high wages, greater productivity or investment is at best indirect, at worst, barely existent. Mr Osborne is selling both party and country a false prospectus.

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Angela Merkel’s legacy at stake as she confronts choice between two disasters

Whatever happens in Athens and Brussels to resolve the Greek crisis, Germany’s chancellor faces growing criticism at home

On Friday night, millions of Germans sat down to watch the TV political comedy The Icedancer, about a German chancellor whose husband whisks her away on holiday to escape the stress of conflict in Ukraine and the Greek crisis. On the way to catch their train, she is knocked on the head by a falling signpost and wakes believing she is living in the runup to the fall of the Berlin Wall.

It’s unlikely that Angela Merkel would

Greeks resigned to a hard, bitter future whatever deal is reached with Europe

Shops and cafes are nearly deserted and small firms are shedding jobs. Now business owners fear there are only two choices: more austerity, or a brutal existence outside the eurozone

Greece has become so gloomy that even escapism no longer sells, the editor of the celebrity magazine OK! admits. “All celebrity magazines have to pretend everything is great, everyone is happy and relaxed, on holiday. But it is not,” says Nikos Georgiadis.

Advertising has collapsed by three-quarters, the rich and famous are in hiding because no one wants to be snapped enjoying themselves – and even if OK! did have stories, a ban on spending money abroad means it is running out of the glossy Italian paper that the magazine is printed on.

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