Eurogroup receives assessment of Greece’s request for a bailout

Euro zone finance ministers have received an assessment Greece’s request for a bailout & its reform proposals.

Greek Prime Minister Alexis Tsipras takes part in a session at the Greek Parliament in Athens on 10 July 2015. Picture: AFP.

ATHENS - The Eurogroup of euro zone finance ministers has received an assessment from EU and International Monetary Fund experts of Greece's request for a bailout and its reform proposals, a spokesman for the group confirmed on Saturday.

"Assessment of institutions under Article 13 of the ESM (European Stability Mechanism) Treaty and initial review of the Greek proposals received by Euro group, meeting 3 pm local time," he tweeted ahead of an emergency meeting in Brussels.

The European Commission, European Central Bank and IMF have told euro zone governments that proposals from Greece for a bailout loan are a basis for negotiation, an EU official said on Saturday.

"The three institutions have made a first joint assessment of the Greek reform proposals submitted Thursday night. Under certain conditions, they jointly see the proposals as a basis for negotiating an ESM programme. This assessment was sent to the Euro group president last night," the official said.

That recommendation is an important step before the Euro group of euro zone finance ministers meets at 1 pm local time in Brussels to decide on Athens' request for help from their European Stability Mechanism bailout fund. Ministers' advisers are due to meet in the Euro Working Group at 8am.

The EU official said the three institutions gave their assessment of economic reform proposals made by Greece, which would be conditions for receiving a loan, and also gave an opinion on whether Athens met eligibility criteria for help.

Tsipras won overwhelming cross-party support but saw some of his own MPs vote against him or abstain.

Earlier, he admitted that some elements of the package fell short of his party's anti-austerity promises.

With Greece's banks shut and completely dependent on a credit lifeline from the European Central Bank, the measures are seen as a last chance to avert the collapse of the financial system and prevent Greece from being pushed out of the euro.

The proposals are to be studied by euro zone finance ministers later today.

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German politician, Philipp Mißfelder said the entire euro group will have to act with sense of urgency to resolve the matter.

"It's not the failure of the whole currency but we don't want to have it happen because I think there will be a lot of collateral damage also for the German economy.

"So everybody will pay at the end, not only the Greeks, so also the rest of the euro group, or maybe the whole continent. And therefore we're convinced that keeping everything together is still the best option," he said.

While Germany says it wants the euro to remain as it is it's been accused of acting too harshly and unfairly towards Greece.

Mißfelder added that, "It's extremely high but it's never too late in politics. So they have the chance also after this bad referendum to come back to the table and to negotiate."

Reuters poll of economist the probability of Greece leaving the Eurozone is at 55 percent.

He said many eastern and central European countries suffered much more than Greece did and they did their homework and, in making things clear to the international community, German doesn't believe economic growth can be created just by austerity.

In an ominous sign for the stability of the government, however, 10 deputies on the ruling benches either abstained or voted against the measures and another 7 were not present, leaving Tsipras short of the 151 seats needed for a majority of his own.