Greek Government Submits Two Year Proposal to European Stability Mechanism


With the current bailout package expiring at midnight Central European Time, the office of the Prime Minister of Greece announced on Tuesday afternoon that the Greek government has submitted a proposal to the European Stability Mechanism for a two-year deal.

“The Greek government today proposed a two-year deal with the European Stability Mechanism for the full coverage of its financial needs and simultaneous debt restructuring,” the announcement from the office of Prime Minister says.  “The Greek government will seek a liveable solution within the Euro until the end. This will also be the message of No to a bad deal, during Sunday’s referendum.”

The letter sent to the ESM by Tsipras does not state the amount of the requested loan but notes that the loan will be used solely for the purpose of paying maturing debts between 2015 and 2017, which are outlined in the same document and are valued at around 29.145 billion euros. The letter also asks that Greece’s European Financial Stability Facility debt be restructured to make the country’s debt sustainable. Finally Tsipras requests that the existing bailout package be extended for a short period of time. The exact duration of this period is not specified,

The Greek government’s request to the ESM can be read here.

In response to Greece’s request, Jeroen Dijsselbloem announced that Eurogroup will hold a conference call 7 p.m. on Brussels.

Meanwhile following Greece’s request, German Chancellor Angela Merkel said at a meeting of her coalition group that Germany will not interfere with any new proposals before Sunday’s referendum takes place, according to sources present at this meeting.

Earlier today Greek Finance Minister Yanis Varoufakis had said Greece would not make the 1.6-billion-euro payment to International Monetary Fund, due at 6 p.m. Eastern Time.


  1. What he asking for is another bailout. Don’t think he get it. Merkel is saying no debt relief for Greece. “There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece’s debt,” Ms Merkel told the Hamburger Abendblatt newspaper.

  2. The Troika’s estimates were way off and that miscalculation still needs to be accounted for. So debt relief will most likely eventually come because Greece has no choice in the matter because of dramatically smaller economy. (well either than or default)

    What will not come any time soon is roll backs in cuts. If leftist “Greeks” want more services down the road they have to learn to pay their taxes (the majority of tax cheats in Greece are leftists). They also have to first produce something to pay for all the social services they demand.

    Unfortunately without efficiency and without a workforce focused on free enterprise our economy will remain in banana republic territory for the foreseeable future. We have to largely ditch the low wage low skill tourist and agriculture industry and replace it with a technological economy. Without resources only technology is capable of bringing the productivity gains necessary to improve quality of life. Otherwise the only way Greece can compete is with low wages (or face high unemployment)

  3. “Greek” leftists have no principles. Whatever Tsipiras says they pretend they supported all along If he changes they agree. If the changes back again they agree. Imbeciles following a cult.

  4. Dear Friends,
    I live in Ireland, though at the moment I am in Italy.
    As a mathematician, Greece holds a special place for me. I love Greece.
    Please vote Yes. Do not step over that cliff. The terms are unfair (as they were for Ireland). But they will not improve if you vote No.

  5. You make a good point that government cuts can hurt productivity. I’m not a pure capitalist. I believe in mixed economies (e.g. it would almost certainly be economically disastrous to get rid of public schools as it would create a generation of illerates)

    All austarity represents is an attempt to reign in Greece’s spending so we can balance our budgets. It had to be done because our governments before this mess started where spending vastly more than they were collecting tax revenue. Most of the Greek left aren’t moderates these day. They are far to the left but they try to manipulatively pawn themselves off as moderate left. (The election of communist Tsipiras bearing witness to this extremism)