Greece Crisis: More Twists And Turns To Come
Hopes of a deal to stave off a default have been raised, but expect more shenanigans as the deadline for an agreement approaches.
Perhaps it was the crowds on Syntagma Square that did it. As European leaders met in Brussels, thousands of Athenians protested outside Parliament. Their message was simple: we want to stay in the euro. So please: get a deal. And soon.
There have been demonstrations before, but the interesting thing is that in recent weeks they have become more critical of the Greek government's negotiating strategy; less patient.
Perhaps Alexis Tsipras, the Greek Prime Minister, has noticed (his advisors certainly have).
The people of Greece are now deeply worried about the country being thrown out of the single currency, and indeed the EU.
And in a series of meetings in Brussels yesterday the Greek PM went further than ever before to try to extend his country's bail-out - and to stave off a default.
In the end there was no deal, but, on the flip side, there was more optimism than we have seen for months.
It is not just the locals who might feel the impact of the proposals: they will affect anyone going on holiday to the Greek islands.
At the moment they get a 30% discount on VAT, which is 23%.
That will be abolished, according to a copy of Greece's proposal seen by Sky News.
According to Greece’s lenders, the document is the most hopeful sign yet that a deal could be possible.
It contains a whole range of sacrifices, including:
:: VAT reform - removing a whole range of exemptions, including those reduced rates on the islands. That will raise 1.36 billion euros by next year.
:: Early retirement will be restricted, saving an additional 300 million euros.
:: Pension contributions will also be increased, bringing in 800 million euros.
:: A new special corporation tax on high profits above half a million euros - that should bring in 405 million euros.
The problem is: Greece's lenders are not yet sure if it all adds up. Or whether they will cut Greece's debt in return.
And they are still not there yet
So expect a lot more shenanigans in Brussels in the next 48 hours if Greece is to meet the new deadline later this week.
Heaven knows they have missed enough of them already.
