ATHENS, Greece (AP) — Greece reached a preliminary deal Monday for a third multi-billion euro bailout from its fellow members in the 19-country eurozone. The deal includes tough economic measures that Greece will need to pass into law quickly before it can get any new loans.
A statement from the summit of euro leaders says these “minimum requirements” do not guarantee a successful result for the bailout negotiations.
Here is a look at what Greece must do:
— Request continued support from the International Monetary Fund after its current IMF program expires in early 2016.
— Streamline consumer tax and broaden the tax base to increase revenue. Laws on this are due by Wednesday.
— Multiple reforms to the pension system to make it financially viable. Initial reforms are due by Wednesday, others by October.
— Safeguard the independence of the country’s statistics agency.
— Introduce laws by Wednesday that would ensure “quasi-automatic spending cuts” if the government misses its budget surplus targets.
— Overhaul the civil justice system by July 22 to make it more efficient and reduce costs.
— Carry out product market reforms that include allowing stores to open on Sundays, broadening sales periods, opening up pharmacy ownership, reforming the bakeries and milk market and opening up closed and protected professions, including ferry transport.
— Privatize the electricity transmission network operator unless alternative measures with the same effect can be found.
— Overhaul the labor market. This includes reviewing collective bargaining, industrial action and collective dismissal regulations.
— Tackle banks’ non-performing loans and strengthen bank governance.
— Significantly increase the privatization program, transferring 50 billion euros worth of Greek assets to an independent fund, based in Greece, to carry out the privatizations.
— Modernize, strengthen and reduce the costs of Greek administration, with a first proposal to be provided by July 20.
— Allow members of the three institutions overseeing Greece’s reforms — the European Central Bank, IMF and European Commission, previously known as the ‘troika’ — to return to Athens. The government must consult with the institutions on all relevant draft legislation before submitting it to public consultation or to parliament.
— Re-examine, with a view to amend, legislation passed in the last six months that is deemed to have backtracked on previous bailout commitments.
BRUSSELS (AP) — The latest from Greece’s financial crisis (all times local):
European Union President Donald Tusk says the bailout deal for Greece could pave the way for the country to remain a member of the euro.
In a tweet Monday, Tusk said eurozone leaders agreed unanimously on a new bailout for Greece that includes “serious reforms” and “financial support.”
Details of the agreement between Greece and its creditors have yet to emerge.
The Greek government made a request last week for a three-year, 53.5 billion-euro ($59.5 billion) financial rescue from Europe’s bailout fund. During negotiations that stretched beyond a weekend deadline into Monday morning, Its creditors indicated that Greece will need tens of billions more than that to stay solvent.
Greece’s economy is in freefall and its banks are facing collapse.
Summit chair Donald Tusk says eurozone leaders have unanimously agreed on a bailout deal for Greece. In a tweet Monday, Tusk said the European bailout program for Greece includes “serious reforms” and “financial support.”
The European Union’s top economy official says he’s hopeful for a deal to keep Greece in the euro — and that the German and French leaders will be at the center of it.
Pierre Moscovici played down ideological differences among Greece’s European creditors on Monday, telling France’s RTL radio that the marathon overnight negotiations show there is a “shared willingness to ensure that Greece remains in the euro.”
Earlier in the negotiations there had been indications of splits among the European countries, with German Chancellor Angela Merkel demanding tough conditions before releasing aid while French President Francois Hollande prioritized unity among the nations that use the euro.
Moscovici said Merkel and Hollande have “solid and direct” relations despite ideological differences and that “there is no solution for Europe” without agreement between the eurozone’s two leading powers.
Greece and its creditors may be working past their self-imposed deadline, but currency traders don’t seem too alarmed about the uncertainty in the eurozone.
The euro was up 0.2 percent Monday at $1.1140.
Craig Erlam, senior market analyst at OANDA in London, said investors appear fairly optimistic that the two sides will soon strike a deal, at least in principle.
He says that with Greek banks on the verge of collapse, “the country really has run out of time.”
Greece’s banks have been closed for two weeks and cash-machine withdrawals have been limited to 60 euros a day as the European Central Bank rejected calls to increase the amount of emergency liquidity for Greek banks. Many believe they will run out of cash this week.
Talks aimed at securing Greece’s future in the euro have dragged into Monday with few signs that a meeting of the 19 leaders of the eurozone is coming to an end.
More than 15 hours after they started their discussions, Greek Prime Minister Alexis Tsipras appears to be holding out against two demands from his creditors: one related to the involvement of the International Monetary Fund in any bailout agreement, and the other a proposal that Greece set aside 50 billion euros ($56 billion) worth of state-owned assets in a fund for eventual privatization.
Summit chair Donald Tusk has presented a “compromise proposal,” details of which remained sketchy Monday morning.
Any deal would see Greece accepting more austerity in exchange for a bailout to prevent its economy from collapsing.