negotiations on a greek bailout drag on past the deadline with eurozone partners and now there are signs of a unanimous agreement. ♪ ♪ hello, this is al jazerra live from doha. coming up on the program, on the verge of a breakthrough. iran and six world powers are close to signing an historic nuclear deal. angering cambodia as it's a parliament votes on a law that critics say will steve p stifle stifle

decent. >> reporter: the state decision to stop recognizing islamic schools. ♪ ♪ hello, we are beginning with breaking news on the greek bailout negotiations. several european leaders have been meeting in brussels and some have come out to say that there has been an agreement. let's cross straight to our correspondent, john in agent ebbs and jackie rowland in brussel, jackie give us a bit of clarity, what is going on? is there an agreement? >> reporter: there is. donald tusk the president of the european council announce aid short while ago there was a unanimous agreement for greece. and clearly after 17 hours of

talks, the various parties were able to overcome the last remaining hurdles. those last remaining hitches were notably the role of i.m.f. monitors, something which the greeks have really objected to. the idea of people coming from outside every three months, going through their books as though they were naughty school children who hadn't done their homework, that was something the greeks found very unpalatable. that was one of the sticking points. another sticking point was this idea of transferring greek assets for privatization oversees. that was something else that the greece found completely unpalatable. this idea that they were being treated like a ward that they had a guardian outside the country rich. they weren't grown up enough to manage their own affairs those were the sticking points we don't know exactly how the

compromised deal was reach. but we know there was unanimous agreement. in the coming minutes we should get details about how exactly the compromise was reached and exactly upon which basis and what figures we are talking about in terms of funds that the greeks have been told that they need to steak in order to be able to service their debt and how exactly the debt will be restructured whether it will be given longer maturity dates, all of those nitty gritty details have yet do to him out. but we are hearing now from the top that there has been a unanimous agreement between all 19 member of the eurozone on resolving the greek crisis. >> okay, jackie, obviously you said that there are details that we are waiting to come out before we understand exactly what's going on. in terms of what will happen for greece on the ground, does that now mean those banks will get that liquidity flowing through them again?

>> reporter: that was one of the key things obviously the european central bank has this crucial role to keep the cash, the funds coming in to greece, we saw the grim scenes of greece -- in greece of people cure you go up by cash machines sometimes only being able to draw out as little as 50 euros a day, the pitiful picks of greek pension nurse trying to get 150 euros to get throughout week. that should hopefully come to an end and the ecb provideth liquidity and it was urgent to reach this decision because we had a deadline looming the 20th of july. if there hadn't been a deal ahead of then. the greeks were due to be obliged to make a payment repayment to the e.c.b. if they failed to so so that liquidity would have been cut off straightaway and the banks would have collapsed within days if not within hours. the fact is now that we have

this agreement that ominous possibility now is receding, we can pictures to see cash flow coming in to those banks and actually the greek economy starting, starting to function again. >> okay, jake, this is all very complicated butt discussions that were going on and we heard this in your report earlier on al jazerra you clarify it was just a discussion to get those negotiations started. what happening next. >> reporter: absolutely yes. >> in terms of negotiations and discussions, what is next? >> reporter: you are absolutely right. earn is harolding this as an agreement. but it's in fact only an agreement to start formal negotiations on a new new third bailout deal for grease. but the fact that so much is at

steak the fact that last marathon session has been going on for 18 hours, this is only the end of the beginning those talks now have to begin in fact during the discussions overnight, one of the demands that the european partners were making of greece was that these reforms, these measures that were on the table, should be drafted in to law, that should actually be adopted and lat identified by the greek parliament by wednesday. obviously we don't have the exact details yet of what that time frame might be for the ratification, but that is to give you an idea of just how urgent it is because of the lack of trust the partners want today see promises backed up by action. they wanted to see it in law before they were actually willing to start those talks. so we can see that there are still a number of hurdles to be overcome. what greece has to deliver in terms of confidence establishing measures with its partners and also what needs to happen now in the individual national

parliament. because if those bailout talks are in fact going to start basically individual members of the eurozone need to give the european commission the authority, the mandate to negotiate on behalf of everyone which means individual european parliament, will need to meet and need to hold a vote saying, yes, we agree that the european commission can negotiate with the greeks on our behalf about this new bailout package so you are quite right this doesn't mean that it's all resolved. it means that there is a unanimous agreement of all the 19 members of the eurozone that there will be a new round of bailout talks. and now we are just talking about how exactly that bailout will work. but the important thing is that greece now has the light at the end of the tunnel. those talks will begin a third bailout is within reach. and i think it's significant that in the early hours of trading, literally in the last few minutes the opening of the

markets in europe, the value of the euro against the dollar jumped flexing reeling it's general optimism as a result of this announcement here in grews brussels. >> jackie, thank you very much. obviously you will be very busy today. we are going to cross straight to athens and speak to john in athens for us. you heard all that john, jackie saying that proposal needs to be ratified in the greek parliament by wednesday, there seems to be problems in greece brewing, is this likely to be passed? >> reporter: look, there are two things to say on that. they do have problems within their party, even to get the previous packaged pursed it suffered eight defections and two no votes and a total of 10 people within its party, two of whom are government ministers

cabinet members and there have been calls from other people within the government. at least two government minister have said that they need to resign. this will be a shake up l this will happen upon tsipras' arrival i doubt that that will happen. he needs to keep them together to the extent that he can in order to pass these so-called up front measures that were in the document. now, he does have the support of the opposition, that's how he was automobile to purse the other discussions that were in the discussions the last three weeks. with the majority of that 251 out of one. the own majority, his coalition in the house is 162 but clearly commands on mention members to the opposition.

so the question now is, what is parliament being called upon to purse. some of the up front measures would appear to be perfectly feasible. setting up a fiscal council of advisers is something that they have already pledged it do. now they have to legislate it. the idea of setting it up in principle has already been voted through. secondly guaranteeing the legal independence of the statistical authority so that the numbers coming out out of greece are iron clad and in line with the european statistical services, also perfectly feasible. it's a tactical difference, it means making the greek statistical body an independent body in legal terms but there are other that are much more difficult and we have to look at those in detail as they merge. >> i am going to touch on something that social media has been a buzz with, this is idea that germany has -- essentially

that is in for greece, there is a hashtag this is a coup and also busy on his blog pointing out that there was never any long-term plan to keep greece within europe. the long-term plan, according to mr. wolfgang is to kick greece out s this really the feeling on the streets of greece? >> reporter: absolutely. and he is expressing his considered opinion, his informed opinion based on confidential conversations a he he's had. and nobody had actually say whether he's right or wrong because only they were party to those talks but no one has any reason to doubt what he says. there is another article editorial that he will be publishing today in the german newspaper, and there he has given an advance idea of what he

will say on his blog, saying he know he wants us out of the eurozone because he told me that up front. and that, of course, -- >> john, i am going to jump in there. john we'll come back to you later, there is a news conference being held now. let's just his then to what is being said. >> nevertheless the decision to give greece a chance to get back on the truck -- on track with the support of european partners. it also avoids the social, economic and political consequences that negative outcome would have dropped. i welcome the progress and the constructed position of greece that helps to bring back trust among eurozone partners. following procedures, the euro group will work with the institutions to swiftly take forward the negotiations. [ inaudible ] as a matter of you

are gently discuss how to help greece meet the financial needs in the short term, so-called bridge financing. that's all, thank you. i would like to thank the commission president jean-claude and i now -- know howell how dedicated you were in the process. thank you very much without your hard work today this today agreement would -- wouldn't be even possible. thank you very much. now john-claude. press of thepresident ofthe commission.

[speaking foreign language] >> okay, i am just going -- that was joan-claude younker for those that are not french speakers i will summarize what he was saying there his first line is we have come to an agreement his other point probably very important for some greeks, there will not be a grexit. and a final point that he was making there is that i am, we are happy with the agreement that we have reached.

before that donald tusk was speaking and he pointed to the progress and the constructive discussion that has been had. and also saying that there will be working with institutions to move forward on this project. and also insuring that financial institutions will be working together to help greece and in particular putting together this idea of a bridge financing let's go back and continue to listen in. >> a lot of these issues putting in effort extra on all sides to get greece back on track. we have prepared reports with some big open issues and brought that to the summit. and over the course of tonight and this morning we reached agreements of the government leaders have reached agreement on those issues. you will find in the agreement some of the issues have been brought forward.

so the greek parliament will very quickly legislate on a number of issues and in that way we'll also work to bring back trust in the whole process and between the member states. there are very concrete agreements on where the greek proposals have to be strengthened further. on labor markets and other reforms. also of course we need to address the issue you of finance needs in-depth and part that have agreement is that there will be -- a fund will be set up which will -- assets will be transferred to this fund. the fund will monetize these assets either by privatizing or by running the assets and trying to make money from those. that money will be used to deal with depth and to reduce debt.

also used for the repayment of recapitalization of banks, one of the big things we have to deal with once the program is agreed is the problems in the banks. the fund building contribute to those recapitalization needs. finally on top of that, once the 25 approximately 25 billion that will be need today recapitalization is repaid, the remaining funds coming from the funds will be used for 50% to bring down debt even more. and 50% can be invested in greece by the greek government. so that is one of the key elements both on debt sustainability and to let growth return to greece and investors confidence return to greece. in the euro group we will pick up on the work. as you know we have a euro group

this afternoon after i try to get a few hours of sleep. the process will be that on the greek side now in the coming days tuesday wednesday they will legislate both the total agreement would require approval of the greek parliament, but also the first let's say prior actions. the first legislations that were outlined in the agreements. once that work has been done in the greek parliament. we will have a euro group call probably on wednesday and that will be the trigger for the other national parliament to start their procedures. that could take place on wednesday, thursday, friday. i can't be very precise because national parliament are is off rep and decide on their own timetables and once the national parliament have dealt with what has been on the table, we will have a more formal decision by the euro group slash board of governors of the esm.

thiswhich is the decision under argued 13.2 of the treaty, which allows then to start the formal negotiations. and the institutions will do those formal negotiations for us. and then, of course, once that is completed and it would also have to deal with the financing needs and depth sustainability, that will be, again a very important moment to come to a completion of the deal. but that is still weeks ahead because a lot of works will still have to be done. so the first couple of days, attention goes to the greek parliament, as soon as they have done the legislation on the first elements. the national parliament will go to work and hopefully by the end of the week we can take the formal decision and give the mandate to the institution to his drawn the deal. i think that's enough for me. >> thank you very much. i now open the floor for your questions. given the many hours of intense negotiations the presidents will only take a few questions. and we start with the gentlemen

there. >> reporter: thank you. andré. [ inaudible ] radio. several diplomats were braving during the night that as regards bridge financing there is a possibility to use the e.f.s.m. fund that is a possibility on the table. i would like to know if you can confirm this. if yes can it be discussed already tomato meeting and a second brief question if i may aren't you concerned that greek government might not be -- might not be able to pass or to survive this agreement let's be frank, taking it in to of course the fact that it seems to be in total contribution as regards everything he asked for until now, thank you. >> should i say something on bridge financing? we have been asked by the summit tonight to already later on today in the euro group return to the issue of bridge

financing, that's basically all i can say. some of this would involve all member states but it's too early to say in which way we will go so we'll look at that later today in the euro group. >> commission wilin will will -- the commission. [ inaudible ] proposals we will presents in the course of today. and that's -- your first question is concerned i am convinced that the government will be able to pass through parliament all the decisions which have been taken today. >> reporter: good morning, i would like to ask you about the guarantees fund. how big it will be? and what it will be comprised of, thank you? >> the size of it is targeted ted at 50 billion.

there will be set up of a governance bringing in experts on this field and the experts will also see what the assets can be that are best fit to -- i won't give you any examples, because it's not my specialty to say what -- [ inaudible ] >> it will be based in greece. sorry, i thought you meant something else. so that will be set up and i outlined what it will be used for. >> we will take one last question. [ inaudible ] from the associated press -- >> this means that the unanimous decision by the 19 euro states we have now created the

prerequisites for us in germany to be able to recommend to the german parliament that the start of negotiations of the concrete esm for greece are approved. i can certainly whole heartedly recommend the start of an approval because we have find, i believe, a way here where the advantages certainly outweigh the disadvantages. the basic principles have been refound. we have always set we wanted to secure the euro we wanted solidarity of the european states on the one side. on the other side also of course the responsibility of the individual countries and this has been achieved. even though the most important currency in these negotiations that we trust and dependability

on each other has certainly suffered in the past negotiations. however we cement to have overcome this and we knowinger of course, that paper is patients and we need concrete actions following these words. we know that trust has to be rebuilt. the greek people responsible also have to take on their responsibilities in order to implement all of this. we have decided that we will have an e.s.m. program where greece will also, after the european monetary program to receive further participation of the i.m.f. and we have said that

until the 15th of july. prior actions would need to be implemented this means that the system has to be changed. it also means that the pension system needs to be changed. it also means that the statistical office of greece has to be changed. and within the fiscal pact they also need -- there also needs to be. [ inaudible ] actions. within another week further acts, for instance the -- be -- e.r.d. guideline and the code of civil procedure have to be adopted. until the 15th of july, which is wednesday these laws have to be passed. and at the same time, the whole paper that we agreed on today will have to be adopted and

passed by greek parliament before our national parliament can actually look at the matter. it will be a process as follows so first of all the prior actions have to be settled by the greek parliament, the whole paper has to be passed, and the three institutions and the euro group will give ourselves a certificate that what we have agreed has actually been passed. and then afterwards we can invite the german bun does cog for a meeting. but of course we will talk about this in due course, we have said it again and again, this is a three-year program so it means on too much of the measures agreed to in june, further changes have to be implemented. for instance, an overhaul of the pension system.

the product market privatization and changes on the labor market. all clear and con treat terms have been put down. 82 to 86 billion euros for three years, that is a considerable amount of money so how can we make sure that the debt is actually feasible and can indeed be sustained. we have stwhrfer agreed to create a 50 billion euro privatization funk taking care of the reprivatized banks and this funds that will have a european supervisory body, this fund will be used in order to

partly reduce the e.s.m. debt. so that means the possibility to payback the debt is increased. and 12.5 billion will also be taken out of this fund in order to be used for direct investment in greece. we do want to use the best possibilities of privatizations. because we have to get as much profit out of what can be prove tie sized as possible. and this certainly is helpful limitation of the program. we had lots of different aspects of programs in the past, but the implementation very often proved very difficult. so we have pointed out once more

that while we worked out this program, and while we check the immaterial me mentation we'll come back to the usual procedure with the three institutions. of course this time it was rather complicated process. and we have pointed out that apart from the law regarding the humanitarian aid the greek government will have to work towards making sure that any laws that were passed on the 20th of february might partly have to be taken back. we said we need up to 25 billion euros for the recapitalization of the banks, it is quite clear that the situation and the. [ inaudible ] has certainly

deteriorate today a great extend and it has to be pointed out again and again in all of europe we have had growth now and greece was at the beginning of growth six months ago and therefore the past six months really were not successful. we once again looked at the question of whether the debts were actually manageable. and we looked at the statements of september 2012 of the euro group and we that said the euro group would be willing if necessary, to adopt further measures such as longer grace period and longer periods for the debt repayment. so this is something that that will be talked about once there has been a successful appraisal of this new greek program. but we have said that a nominal air cut is not an option for us