Greece flips on bailout.

Greece flips on bailout.

This is not the end of Greece’s financial crisis, nor does it remove the risk that the country may have to leave the euro. That’s because the only mechanism for Europe to hand over rescue loans expired at midnight. And Greece defaulted on a payment to the IMF Tuesday, complicating its role in any future bailout. [CNN Money]

THE LETTER from Greece Prime Minister Alexis Tsipras to the IMF and Europe’s leaders, reported first by the Financial Times, surprised a lot of people.

Reuters reporting details

“The Hellenic Republic is prepared to accept this Staff Level Agreement subject to the following amendments, additions or clarifications, as part of an extension of the expiring EFSF program and the new ESM Loan Agreement for which a request was submitted today,” Tsipras wrote in the letter, first reported by the Financial Times newspaper.

German Finance Minister Wolfgang Schaeuble said the letter came too late, had not brought any greater clarity and was no basis for serious negotiations now.

[…] The Tsipras letter contained only a single sketchy reference to labor market reform, which was one of the creditors’ demands to make the Greek economy more competitive.

“The new framework will be legislated in autumn 2015,” it said without saying what measures it would contain. Tsipras’ leftist government wants to restore collective bargaining rights scrapped under previous bailout-driven reforms, and opposes a demand to make collective layoffs easier in the private sector.