Athens News Agency: Daily News Bulletin in English, 15-07-07

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Marathon political leaders' council ends after seven hours of talks

[02] Joint statement of Greek party leaders calls for economically viable agreement

[03] Government spokesman says government to take initiatives for a viable deal

[04] President Pavlopoulos and PM Tsipras speak on phone with French President Hollande

[05] PM Tsipras talks with German Chancellor on the phone

[06] IMF says it 'stands ready to assist Greece if requested to do so'

[07] Russian President contacts IMF's Lagarde regarding Greek referendum result

[08] New Greek finance minister Euclid Tsakalotos sworn in

[09] Biographical note of newly-appointed FinMin Euclid Tsakalotos

[10] EU Commission Vice President: 'No' result widens gap between Greece and the eurozone

[11] Merkel spokesman says referendum result 'clarifies' Greek position

[12] We respect referendum result; a lot depends on Greek proposals, German gov't spokesman says

[13] German FinMin Schaeuble: We respect Greece's decision, but the situation isn't easier

[14] We are waiting for Tsipras' proposals, French FinMin Sapin says

[15] It is up to Greece to remain in the eurozone, German gov't spokesman says

[16] Russia's President expresses support for Greek people

[17] Eurogroup meeting to be held on Tuesday

[18] Tuesday's Eurogroup to start at 2 pm, Dijsselbloem tweets

[19] Tusk calls emergency eurozone leaders' summit

[20] Finance Minister Varoufakis resigns

[21] Varoufakis: The only thing that counts today is the Greeks' resounding 'No'

[22] It is an important day for the Greeks; the government will respond with a sense of responsibility, Economy Min says

[23] Government should make institutions understand Greece's European orientation, Alternate FinMin Mardas says

[24] Parliament president Konstantopoulou says she will send letter to EU's Schulz on Greek debt, statements on Greece

[25] Official results of Greek referendum released by the Interior Ministry (100 pct of votes counted)

[26] FM Kotzias says relations between Greece, Israel and Cyprus promote stability in region

[27] Main opposition's political council to convene on Tuesday

[28] Greece's Economy Minister Stathakis calls on ECB to keep Greek banks afloat

[29] ECB keeps ELA unchanged for Greek banks, raises haircut on collaterals

[30] Greece extends bank holiday until Wednesday

[31] Any agreement with Greece will be based on ESM treaties, German finance ministry spokesman says

[32] Life insurance premium production up in Jan-May

[33] Foreign investors cut exposure in Greece stock market in June

[34] Light quake jolts Zakynthos

[35] No service fee in Aegean Airlines tickets until July 19

[36] Fair on Tuesday

[37] The Monday edition of Athens' dailies at a glance Politics

[01] Marathon political leaders' council ends after seven hours of talks

The other party leaders at the meeting, in statements to reporters as they left, said they had agreed on the need for consensus andnegotiations with Greece's EU partners must continue in order to find a solution that will allow Greece to remain in the eurozone - with the exception of the Communist Party of Greece (KKE).

The acting head of main opposition New Democracy Vaggelis Meimarakis, who will serve as the party's president in the wake of Antonis Samaras' resignation on Sunday until a new party leader is elected, said he had arrived with a "desire to reach understanding".

While criticising the government for not calling such a meeting long before and pointing out that the situation was now much worse than it had been 10 days ago, he said that all political leaderships "now have an obligation to contribute in order to achieve unity and have the calmness to encourage the government to bring an agreement that will have broader support."

Independent Greeks (ANEL) leader Panos Kammenos, head of the smaller party in the ruling SYRIZA-ANEL coalition, said that a solution was the only way forward after the clear message sent by Greeks in Sunday's referendum.

"Shortly we will have a joint announcement signed by all the political leaders apart from the general secretary of KKE. This is a great day....when the sum of the political system apart from KKE give the prime minister the power to negotiate on behalf of the majority of the Greek people. It is up to Europe to find an immediate solution, with growth," he said.

Potami party leader Stavros Theodorakis said that the responsibility for the negotiation now rested with the prime minister and that "we must all be united and the political leaders must be useful and not pleasant."

"Today there will be a joint announcement that will concern continuing the negotiations in order to reach an agreement on a programme and on economic growth," he said, adding that the discussion during the marathon meeting had concerned both the referendum and what the Greek side will aim for.

The announcement will also include a reference to the start of a discussion on the sustainability of Greece's debt, Theodorakis added, noting that this was the "last great effort to find a solution to the impasses."

PASOK party leader Fofi Gennimata also criticised the government for not launching such an initiative sooner but waiting until Greece's banks were closed and the country had no bailout umbrella. She said the negotiations must continue, with the government responsible for finding a solution that will keep the country within Europe and normalise social and economic life.

"The government has no mandate for a rupture, the people's sacrifices must be vindicated," she stressed.

KKE leader Dimitris Koutsoumbas distanced himself from the others, sticking fast to KKE's position against Greece's EU membership and saying there could be no negotiation in the interests of the people within the EU. He expressed disagreement with the announcement, saying no one had authorised anyone to sign new memorandums on behalf of the people.

[02] Joint statement of Greek party leaders calls for economically viable agreement

All party leaders had the opportunity to express their own views and at the end of the meeting they prepared - with the exception of Communist Party leader Dimitris Koutsoumbas who disagreed with the document - the following joint statement:

"The recent verdict of the Greek people does not constitute a mandate for rupture, but a mandate to pursue and consolidate the efforts to achieve a socially just and economically viable agreement.

To this end, the government assumes responsibility for the continuation of negotiations, and all political leaders will contribute, respectively, to this end, within ones' institutional and political role.

The joint aim is to achieve a solution which will ensure:

The adequate cover of the country's funding needs

Credible reforms, based on the fair distribution of burdens which will promote development, with the least possible recessionary effects

A strong, front-loaded, growth program, primarily for combating unemployment and encouraging entrepreneurship

A commitment to start a fundamental debate on dealing with the problem of the sustainability of Greece's public debt

Restoring liquidity towards the Greek banking system, in cooperation with the ECB, constitutes an immediate priority

The prime minister pledged to brief political leaders immediately after the Summit meeting on the first conclusions to be drawn and the overall progress of negotiations."

[03] Government spokesman says government to take initiatives for a viable deal

"The council of political leaders ... couldn't ignore the massive, majority and clear message of the Greek people. The mandate, that is, for a substantial and sustainable European solution that allocates weights in terms of social justice, regulates the issue of debt, and ensures the growth prospects of the Greek economy and naturally restores bank liquidity," Sakellaridis said.

He said the Prime Minister Alexis Tsipras asked political leaders to support him to implement the Greek people's decision. "The Greek government, with a sense of responsibility and fully aware of the critical moments, will immediately take all necessary political initiatives to achieve an agreement as soon as possible," he concluded.

[04] President Pavlopoulos and PM Tsipras speak on phone with French President Hollande

[05] PM Tsipras talks with German Chancellor on the phone

During their discussion, they agreed that Tsipras will present the proposals of the Greek government for an agreement at the European leaders' summit on Tuesday.

[06] IMF says it 'stands ready to assist Greece if requested to do so'

"The IMF has taken note of yesterday's referendum held in Greece. We are monitoring the situation closely and stand ready to assist Greece if requested to do so."

[07] Russian President contacts IMF's Lagarde regarding Greek referendum result

Russian President Vladimir Putin has contacted the head of the International Monetary Fund (IMF) Christine Lagarde on the telephone in order to discuss the outcome of the referendum in Greece, the Kremlin announced on Monday.

"There was a discussion on issues of cooperation between Russia and the IMF, in the contect of the results of the referendum, on July 5, in Greece, concerning the terms of extending financial assistance to Athens by the international creditors," the announcement said.

It concluded by expressing hope that efforts to find the best solution to the problem of Greece's debt will continue, taking into account the interests of all sides."

[08] New Greek finance minister Euclid Tsakalotos sworn in

Taking over the finance ministry portfolio from his predecessor Yanis Varoufakis, Tsakalotos swore a civil oath of office.

Speaking to reporters shortly before the ceremony began, Tsakalotos admitted that he was taking over the finance ministry at a difficult time.

"I would be lying," he said, "if I told you that I was not apprehensive."

[09] Biographical note of newly-appointed FinMin Euclid Tsakalotos

He has also taught at the Universities of Kent and Athens University of Economics and Business until September 2010. Since 2010, he is Professor of Economics at the National and Kapodistrian University of Athens.

He has been a member of the Central Political Committee since July 2013 and a member of the Executive Committee of POSDEP (Hellenic Federation of University Teachers' Associations). In May 2012 he was elected a SYRIZA MP in Athens and he was re-elected in 2015.

He has written six books and contributed articles to numerous scientific magazines on macroeconomics, European Union economics, political economy and philosophy of social sciences.

Tsakalotos has also been a member of the parliament's Permanent Committee of Economic Affairs. In January 2015 he took over as Alternate Minister for International Economic Relations.

[10] EU Commission Vice President: 'No' result widens gap between Greece and the eurozone

"The European Commission takes note of the result of yesterday's referendum in Greece and we respect the democratic choice of the Greek people," European Commission Vice President Valdis Dombrovskis said at a press conference on Monday.

"The 'no' result unfortunately widens the gap between Greece and other Eurozone countries," he underlined. "There is no easy way out of this crisis. Too much time and too many opportunities have been lost," he added.

Dombrovskis noted that the eurozone has 19 democracies and a mutually beneficial solution must be found. However, he made clear that the Commission cannot negotiate a new programme without a mandate from the Eurogroup.

Asked to comment of the resignation of the Greek Finance Minister Yanis Varoufakis, he said that the Greek government decides who will be the country's Finance minister.

He also said that the European Central Bank is making full use of its tools to ensure stability.

[11] Merkel spokesman says referendum result 'clarifies' Greek position

The Greeks' overwhelming rejection of austerity measures clarifies the Greek position but this does not necessarily make it stronger, German government spokesman Steffen Seibert said on Monday, commenting on the result of the Greek referendum.

"The Chancellor sees in the result of the referendum the clarification of the Greek position, that 60 pct of Greeks are aligned behind the Greek government's negative stance," Seibert said. "I cannot and do not want to evaluate whether [Greek Prime Minister Alexis] Tsipras emerges stronger or weaker from the referendum. He personally considers himself - that is how I interpret his speeches - as clearly strengthened. On the German side, with the citizens' vote, the Greek position has been further clarified. The issue was never austerity policies but reform policies," he said.

Asked whether it was possible to achieve an agreement with Greece within 48 hours, Seibert said that an agreement based on the ESM would need to be approved by national Parliaments and would be difficult to achieve.

"The door for talks always remains open," he said.

[12] We respect referendum result; a lot depends on Greek proposals, German gov't spokesman says

"We take note of and respect this result. Certainly, the government remains willing for discussions, as the Chancellor told the parliament last week: The door is always open," German government spokesman Steffen Seibert on Monday said on the Greek referendum, but stated that "after yesterday's decision of Greek citizens, there are no conditions in place so as to start negotiations for a new aid program."

"Europe should now discuss, investigate what possibilities exist to help Greek citizens. A lot will depend on the proposals of the Greek government," he added.

[13] German FinMin Schaeuble: We respect Greece's decision, but the situation isn't easier

German Finance Minister Wolfgang Schaeuble on Monday said his country respects the decision of the Greek people in Sunday's referendum but the situation has not been made easier.

"The situation for Greece and the people of Greece is more difficult than the people in other countries. Tomorrow we have the Eurogroup. We might hear there by the Greek colleague what they propose us, after the decision in Athens," the minister said during a press briefing in Warsaw with his French and Polish counterparts.

Asked on possible Greek proposals, he said he cannot comment on a proposal he hasn't received, adding that he didn't make a comment on Sunday for the result of the referendum.

Asked on his personal relation with former Finance Minister Yanis Varoufakis, Schaeuble said that "at no point was there a personal problem and there isn't now after he announced that he was no longer minister either," adding that Varoufakis represented a stance that Germany did not agree with.

The German minister said that it will not be easy for anyone who succeeds him to find a solution with his colleagues in the Eurogroup to Greece's problems.

[14] We are waiting for Tsipras' proposals, French FinMin Sapin says

"A dialogue is already open", French Finance Minister Michel Sapin on Monday said in an interview with radio Europe1, adding that it now lies with the Prime Minister Alexis Tsipras to make proposals.

"The debate on the debt is not a taboo," he noted adding that a proposal, which could provide a basis for dialogue, is already on the table.

"The Greek debt in the coming months or the coming years will be too high for Greece to recover," the minister said and added: "There are various expressions, (...) we could restructure it, reduce it, extend it and this is the proposal that France has put on the table and we can discuss."

Referring to the importance of 'No' vote in the referendum, Sapin stressed that "there is no automatic relationship."

[15] It is up to Greece to remain in the eurozone, German gov't spokesman says

Greece is a member of the eurozone. It now lies with the Greek government to act in order to remain in the eurozone, German government spokesman Steffen Seibert on Monday said in response to a question about a possible Grexit.

Asked on the possibility of a debt haircut, German Finance ministry spokesman Martin Jaeger replied negatively, noting that there is no reason for that and stated that the position of the German government remains the same.

[16] Russia's President expresses support for Greek people

Russia's President Vladimir Putin on Monday expressed his support for the Greek people in overcoming the country's current difficulties, in an announcement issued by the Kremlin concerning his earlier phone conversation with Greek Prime Minister Alexis Tsipras.

According to the announcement, the call was made at Tsipras' initiative and their discussion focused on "the results of the Greek referendum on international creditors' conditions for providing financial aid to Athens, and discussed several matters concerning further development of bilateral cooperation."

[17] Eurogroup meeting to be held on Tuesday

A Eurogroup meeting will take place on Tuesday to discuss the state of play after the Greek referendum, Eurogroup president Jeroen Dijsselbloem said.

"I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece," he underlined adding that difficult measures and reforms are inevitable for Greek economy recovery.

"We will now wait for the initiatives of the Greek authorities," he concluded.

[18] Tuesday's Eurogroup to start at 2 pm, Dijsselbloem tweets

[19] Tusk calls emergency eurozone leaders' summit

Tusk said he considered the emergency meeting necessary following the outcome of the referendum in Greece in order to discuss the situation that has arisen and possible ways to move forward.

Also invited to attend Tuesday's summit are European Central Bank (ECB) President Mario Draghi and Eurogroup President Jeroen Dijsselbloem.

The summit meeting will take place at 19:00 Greek time in Brussels and focus on the next moves after the referendum.

[20] Finance Minister Varoufakis resigns

The full tex follows:

The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.

Like all struggles for democratic rights, so too this historic rejection of the Eurogroup's 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution - to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.

Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted 'partners', for my... 'absence' from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday's referendum.

And I shall wear the creditors' loathing with pride.

We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.

The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.

[21] Varoufakis: The only thing that counts today is the Greeks' resounding 'No'

Asked by reporters on the name of the new Finance Minister, Varoufakis said that "it will be a person familiar to you" while at a question if the head of the Council of Economic Advisors Giorgos Houliarakis has resigned, he said "I believe yes" .

[22] It is an important day for the Greeks; the government will respond with a sense of responsibility, Economy Min says

[23] Government should make institutions understand Greece's European orientation, Alternate FinMin Mardas says

He said "that the stay to the eurozone is a term that many of us have set in order to remain in government."

Mardas underlined that the agreement should be immediately concluded and that "we have to give the image of a team of negotiators with a clear European orientation."

He added that any doubt institutions may have, must disappear in the next few hours if not in the next 24 hours.

[24] Parliament president Konstantopoulou says she will send letter to EU's Schulz on Greek debt, statements on Greece

"[Schulz should] refrain from further statements which do not show respect to the democratic decision and the verdict ... and on the other hand that he contributes decisively in informing all members of the European Parliament - which meets in plenary session in Strasbourg - on the issue of the Greek debt, and its unsustainability, which was admitted by the IMF," Konstantopoulou said in a statement.

She also that the European parliament should also discuss the "extreme violations of human rights" of the citizens of Greece from the policies of memorandums and bailout programmes.

[25] Official results of Greek referendum released by the Interior Ministry (100 pct of votes counted)

NO: 61.31 pct

YES: 38.69 pct

Voters participation reaches 62.50 pct

[26] FM Kotzias says relations between Greece, Israel and Cyprus promote stability in region

"We have a common interest in stability and security, we have some other kinds of thinking about many other problems, but at the core of our beliefs, I think we have the same interests: security and stability in the area inside this triangle," Kotzias told journalists and added "it is a triangle with Ukraine at the top, on the left is Libya, on the right side we have the Middle East: Iraq and Syria."

The minister said that in recent years, the two countries have developed bilateral relations in sectors like security, energy, tourism and economy.

The minister also said there is a mutual decision "for dynamic development of the strategic cooperation between our two friendly peoples."

On Tuesday, Kotzias will visit Palestine, where he will meet Foreign Minister Dr. Riad Al-Malki in Ramallah. He will then be received by President Mahmoud Abbas.

[27] Main opposition's political council to convene on Tuesday

Financial News

[28] Greece's Economy Minister Stathakis calls on ECB to keep Greek banks afloat

"Our country has no mandate to leave the eurozone," he said, in the interview posted on his twitter account.

The best case scenario, according to the minister, was for an additional 3.0 billion euros in ELA funding on Monday. Even if the ECB simply maintained the ELA ceiling at current levels, he added, the restrictions on cash withdrawal and bank transfers would stay in place until Friday.

A decision to cut ELA would put banks in a dire position, he warned.

According to Stathakis, the second element of the bailout will be based on the letter sent by Greek Prime Minister Alexis Tsipras to the creditors last week, accepting most of their terms, and asking for small changes in the nature of proposed pension cuts.

The Greek government will also push for a 30 pct debt haircut, in line with IMF recommendations in order to make Greece's debt sustainable, he said.

[29] ECB keeps ELA unchanged for Greek banks, raises haircut on collaterals

The European central bank, in a statement said that "The Governing Council of the European Central Bank decided today to maintain the provision of ELA to Greek banks at the level decided on 26 June 2015 after discussing a proposal from the Bank of Greece. It said that the Governing Council of decision makers was "determined to use all the instruments available within its mandate".

It noted, however, that "ELA can only be provided against sufficient collateral," and that the financial situation of Greece had led to a decision to adjust the haircuts on collateral accepted by the Bank of Greece for ELA, which "relies to a significant extent on government-linked assets."

[30] Greece extends bank holiday until Wednesday

Alternate Finance Minister Dimitris Mardas said that the government was drafting a new legislative act extending the bank holiday period and said that banks will offer a wider range of services to customers.

[31] Any agreement with Greece will be based on ESM treaties, German finance ministry spokesman says

German finance ministry spokesman Martin Jaeger on Monday said that any agreement for financial assistance to Greece must be based on the European Stability Mechanism (ESM) treaties. He also clarified that Berlin does not consider that the letter sent by Greek Prime Minister Alexis Tsipras on June 30 was still valid.

"We are not in an environment that can be freely interpreted," he said, pointing out that the treaty clearly stipulates that any financial assistance is linked to conditions and this was legally impossible to circumvent.

Regarding Tsipras' letter on June 30, Jaeger said that this was not considered a request for aid under ESM treaties, "or at least, not one that meets the formal requirements".

Asked to comment on the role of the International Monetary Fund (IMF) and its call for a debt haircut for Greece, Jaeger underlined that this was "not a topic" for Germany.

He noted that debt haircuts were one of the tools employed by the IMF but that Europe had agreed on another path, through assistance programmes and reforms, to create an environment and a basis that will make debt sustainability possible.

Jaeger said this approach had been working well for Greece, until the end of last year, and had also worked well in other bailed-out countries, indicating no need to change it.

The spokesman underlined that it was now up to the Greek government, which had disputed the basis of this assistance through bail-out programmes by calling the referendum.

"We have to discuss on what basis we will even be able to continue talks," he said, adding that there were disagreements on this point between the IMF and the Eurogroup.

He pointed out that the programme until June 30 had been in the framework of the European Financial Stability Facility (EFSF) but would now shift to the ESM, which had much tougher terms.

Asked about the breakdown in the previous negotiations, Jaeger denied that this was over a 400 million euros difference but "because the Greek government realised that there would be no further debt relief and certainly not in the form of 27 billion euro swaps, as Mr. Varoufakis proposed."

[32] Life insurance premium production up in Jan-May

A report by the Association of Insurance Companies showed that premium production in the Greek insurance market grew 1.7 pct in the January-May period, compared with the same period last year. Life insurance production rose 7.7 pct (excluding investment linked life insurance contracts) in the five-month period, while total premium production (life and damage) fell 3.6 pct in the period.

[33] Foreign investors cut exposure in Greece stock market in June

In June, foreign investors were net sellers with capital outflows totaling 97.76 million euros, while Greek investors were net buyers with capital inflows totaling 100.64 million euros. Foreign investors accounted for 53 pct of total transactions in the market in June (up from 51.8 pct in May but sharply down from 66.8 pct in June 2014).

The value of transactions totaled 1.849 billion euros in June, up 9.8 pct from May, but down 48.3 pct from the same month last year. Average daily turnover was 97.33 million euros in June, up from May (84.22 million) but down from June 2014 (179 million euros).

The number of active investor codes rose to 33,912 in June, from 24,581 in May and from 32,143 in June last year. The market's capitalisation totaled 40.99 billion euros at the end of June, down from 42.46 billion a month earlier (a decline of 3.5 pct) and sharply down from 69.86 billion euros in June 2014.

General News

[34] Light quake jolts Zakynthos

According to Athens National Observatory the quake's epicentre was located at the sea region 56 km west of Zakynthos.

[35] No service fee in Aegean Airlines tickets until July 19

The service fee is 20 euros.

Weather forecast

[36] Fair on Tuesday

[37] The Monday edition of Athens' dailies at a glance

DIMOKRATIA: The spectacular 61.3 pct of 'No' in the referendum dramatically changes the political landscape

EFIMERIDA TON SYNTAKTON: 61.3 pct 'No', 38.7 pct 'Yes'

ELEFTHEROS TYPOS: Greece in danger. The country's stay in the eurozone is judged tomorrow

ESTIA: The country's adventure after the resounding 'No' to the referendum

ETHNOS: (Prime Minister Alexis) Tsipras' plan after the 61.3 pct. Political leaders' council on Monday, summit on Tuesday

KATHIMERINI: Agreement or Grexit after the powerful 'No'

Kontranews: A triumph of 61 pct

NAFTEMPORIKI: Sweeping developments after the resounding 'No'

RIZOSPASTIS: Referendum 2015: No complacency, no consensus to anti-popular agreements of the "next day"

TA NEA: Reforms or Grexit

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