Update: the farce must go on because according to Bloomberg the "final final" Greek proposal never made it, and was, ahem, lost in tranmission: EU HAS RECEIVED NO NEW PROPOSAL FROM GREECE YET: EU DIPLOMAT - BLOOMBERG
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With just under 24 hours until Monday's final summit after which even JPMorgan now agrees the ECB will be forced to use a nuclear option and limit or cut Greek ELA thus imposing capital controls as a "negotiating tactic", earlier today both France and Germany told Greece it must have a reform deal agreement with the Troika finalized and delivered before a crucial leaders’ summit between Athens and its creditors on Monday; in other words before trading opens on Monday.
According to the FT, with the Greek cabinet meeting on Sunday to consider compromise proposals, François Hollande and Angela Merkel both telephoned Alexis Tsipras, the prime minister, to remind him he needed a “staff level” agreement with the European Commission, IMF and ECB ahead of the summit.
They told him the summit was not for “negotiations” — which anyway would be all but impossible in a forum including all 19 eurozone members — and urged him to reach a deal with the institutions.... If a deal is reached, the two leaders said the parties could then start discussing a third bailout at the summit. France is believed to be open to discussing debt relief and restructuring for Athens, a top priority for Mr Tsipras, whose radical leftwing government won office in January setting Greece on a collision course with its creditors.
As a result, the Greek cabinet has been summoned to a meeting at Tsipras’ Maximos Mansion residence on Sunday morning for a last-ditch meeting to hash out the government’s strategy. Here they are expected to discuss how Mr Tsipras can bridge his two seemingly intractable electoral mandates: to end austerity and block further cuts in spending while also satisfying creditors’ demands for reform to keep Greece in the Eurozone.
And while the Greek negotiating position is one where any spending-cut compromise will be seen as a defeat for Tsipras - just yesterday the Minister of State Nikos Pappas used an interview with the country’s Ethnos newspaper to reiterate the government’s firm opposition to cuts to pension plans or wages - moments ago the Greek Prime Minister presented Greece's proposal for a deal during phone talks on Sunday with German Chancellor Angela Merkel, French President Francois Hollande and EU Commission President Jean-Claude Juncker, according to Reuters.
"The prime minister presented the three leaders Greece's proposal for a mutually beneficial agreement that will give a definitive solution and not postpone addressing the problem," it said in a statement.
Bloomberg has the bulk of the proposed details:
- Greek plan to unlock bailout funds includes proposal to eliminate early retirement options starting from Jan. 1, 2016, a Greek government official says, asking not to be named.
- Plan includes levy on companies with more than
