FXStreet (Edinburgh) – Analyst Jim Reid at Deutsche Bank reviews the recent developments in the current debt talks.
Key Quotes
“In the latest Focus Europe piece published on Friday, our Economics colleagues noted that they continue to believe that the most likely outcome is that a deal will be reached”.
“They suggest that this is the most rational outcome given that a Grexit would be costly for both sides and a deal is what Greek citizens want (according to opinion polls)”.
“They note however that in order for it to be sustainable, the deal needs to be a balanced compromise, although the path to which is perilous”.
“Greek PM Tsipras needs to show the left wing of Syriza that he drove the bargaining process to the edge of the cliff, although pushing an agreement through the Greek parliament may entail the loss of the current coalition”.
“They also suggest that in the case of a non-payment event, capped ELA and capital controls may yet be required to gain agreement on a sustainable, balanced compromise. It looks set to be a busy day ahead”.
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