Greece OffersGreek Prime Minister Alexis Tsipras has made an offer to European Union leaders he described as a “definitive” solution ahead of Monday’s emergency summit...
The proposal was for “for a mutually beneficial agreement, which will give a definitive solution, and not defer the problem,” the statement said. Following an ongoing cabinet meeting today in Athens, Tsipras will fly to Brussels for talks with EU leaders.
This concept almost certainly includes a degree of debt forgiveness given the reference to a "definitive solution." The IMF has been open to negotiations toward that end. The big questions concern whether private and public sector creditors would both participate and the amount involved. Some private creditors, as well as Germany, might be very reluctant to agree to any debt restructuring. Ultimately, such restructuring would need to be agreed through negotiations.
If the Greek Plan seeks an immediate agreement on forgiveness, it likely won't get very far, unless the Greeks agree to accept negotiations toward that end in place of an immediate agreement. If the plan seeks a commitment to future negotiations on debt forgiveness, that position might not be a deal-breaker.
Other big issues to be resolved include structural reforms, including tax and pension reforms. Nothing was mentioned about that angle in the early news story.
So, at least for now, it's premature to know whether this new proposal offers a starting point for a possible breakthrough in the deadlock. As the day goes on, more details will almost certainly be reported.