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Tsipras  said he accepted difficult reforms as he didn’t get a mandate to leave the euro-zone. But this was not enough and he is requested to hand over fiscal sovereignty to the EU, which seems to be fully held by Germany. It seems that the  unacceptable demands were an overplay by Merkel and Schaeuble are rebuffed by the mainstream press, including in Germany and the hashtag #ThisIsACoup is raging on Twitter. The notion that Germany is pushing for a Grexit is becoming clearer.

Update:  Greek deal reached – EUR/USD doesn’t buy it

Nevertheless, Tsipras keeps hope alive and continues negotiating, trying to remove the most difficult parts.  Latest developments:

  • Germany requests automatic spending cuts, a  transfer of Greek assets worth 50 billion euros to a fund run by Schaeuble. The deadline for passing reforms is Wednesday.
  • Mainstream press, including Der Spiegel, has described demands as punitive, cruel and a deliberate humiliation.
  • Tsipras wants to remove the IMF, no asset transfer, a signal to maintain ECB ELA (the key to a Grexit)  and a  stronger statement on debt
  • #ThisIsACoup trending on Twitter.
  • Talks are going on between all euro-zone leaders and sometimes only between Hollande, Merkel and Tsipras.
  • There is a rumor that the ECB will accept a delay of the upcoming July 20th payment.
  • Results are expected only at 3:00 GMT, but this is only a general estimate. Talks could break up beforehand or continue into the morning.

EUR/USD is trading below Friday’s close at 1.1150, but above the lows, currently at 1.1125.

Greek crisis – all the updates

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EURUSD early July 13 Gap lower on trouble in Greek talks