Greece government submit reform proposal

Friday, Jul 10 2015

Greece’s government met the July 9 midnight deadline it had faced to submit proposals in a bid to get a new bailout, but several crucial steps in the process lie ahead before there can be any certainty about a deal that would stave off bankruptcy for the country. The proposals were worked out at a meeting earlier that day between Greek prime minister Alexis Tsipras and his deputy prime minister, finance minister and economy minister.

They were then discussed by the cabinet in Athens before being submitted to the Eurogroup and Greece’s creditors, the International Monetary Fund, European Commission and European Central Bank. The Eurogroup confirmed receipt of the proposals ahead of the midnight deadline.

The proposals are reported to include 12 to 13 billion euro of measures, including tax increases and pension reforms. In the early hours of July 10, a Greek media report described in detail what it said the proposals contained.They were due to be discussed on the morning of July 10 by Tsipras’s Syriza party, where it was likely that the element of austerity measures would be received as anathema by the leftist-populist party’s far-left wing.

Later the same day, a bill enabling a mandate for negotiations on the measures was to be put to the Greek parliament, where they were also sure to be set from a stormy passage from within the ranks of ruling parties’ MPs. At the same time, opposition centre-right New Democracy was reported to have advised in advance that they would support the reform proposals.Should they clear the passage of scrutiny by EU institutions, the proposals will be discussed at a special meeting on July 12 by EU leaders.

Euro is currently being traded few points above 1.11 handle. Pair is likely to find support around 1.1030 level and resistance above 1.1150 area. There will be no major data releases in the rest of the session.

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