EU Leaders Must Hold Emergency Meeting if Greek Talks Fail, Says Tsipras

Financial Affairs Commissioner Moscovici delivers a keynote speech ahead of an Austrian National Bank panel discussion in Vienna

The agreement on Greece that was reached in principle in Valletta is certain to yield a result long before the summer, Finance Minister Euclid Tsakalotos said on Friday, during a press conference after the Eurogroup in Malta.

Greece has struck a deal with its creditors on reforms the country must carry out in exchange for continuing to receive money from its €86bn bailout programme.

Pierre Moscovici, European Commissioner for economic affairs, said the agreement had been reached after "several months of hard negotiations", with a breakthrough made this week.

Talks between the government of Greek Prime Minister Alexis Tsipras, euro-area creditors and the International Monetary Fund have been stalled for months as the parties haven't been able to agree on how to amend Greece's pensions, labour market and tax system.

In a proposed compromise discussed on Tuesday, Greece would reduce its pension outlays by 1% of gross domestic product in 2019 and lower its tax-free threshold in 2020 by a similar amount, according to three European Union officials with knowledge of the talks.

Once a broad agreement is reached, Dijsselbloem said the eurozone will come back to issues related to Greece's medium-term budget and the country's debts.

Greece has to reach an agreement with creditors in order to make its $7.5 billion debt payment in July.

The China-Greek friendship and cooperation improved in particular following China's active support for Greece during its debt crisis.

Despite projections for growth, the Greek economy actually stalled in 2016 and recent data shows that after some stabilisation, it has begun to falter again amid uncertainty triggered by the row.

The fund's participation is crucial part of the deal for eurozone countries.

"My guess is that the Greek government got a stern warning from the ECB (European Central Bank)/Bank of Greece that a further impasse would have meant a severe hit to the economy via capital outflows", Claus Vistesen, chief euro zone economist at Pantheon Macroeconomics, told CNBC via email about Friday's agreement.

"We have been successful in doing so and we now have an agreement over the overarching policies".

Even Wolfgang Schaeuble, the German finance minister who has been one of Greece's sharpest critics over the past few years, said he didn't expect any major hitches ahead.

Southern Europeans reacted strongly, with Portugal's prime minister and former Italian premier Matteo Renzi calling on Dijsselbloem to step down.

"Mr. Dijsselbloem said that it had not been his intention to insult anyone, he was open and explained that he used the wrong words and had not meant to say that", Tsakalotos said.

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