FXStreet (Barcelona) – The Investec Team shares the key developments and risks ahead for Greece, and further add that the Sunday Eurogroup summit will be the ultimate deadline to reach an agreement.
Key Quotes
“The Eurogroup finance ministers and Euro area leaders met separately yesterday and were left in a state of incredulity as the Greek government, who had sold to their people that a ‘No’ vote would strengthen their negotiating hand, turned up to the meeting without any new proposal. With Greek banks still closed, despite previous promises from the Greek government they would already have reopened, time is running out for Greece.”
“It seems the Eurogroup and leaders agree; they have now given Greece until Friday morning to present new proposals to secure a deal with creditors. A full EU summit has been called for Sunday which is the ultimate deadline to reach an agreement. If Greece does not meet the new deadline it is reported the ECB may pull its liquidity lifeline which could trigger a run of events that forces Greece out of the Eurozone. German Chancellor Merkel is said to be “not especially optimistic” while EC President Jean-Claude Juncker said “We have a Grexit scenario prepared in detail”. This means yet another Sunday event risk and another volatile market open next week for the Euro. When time is running out and progress is low, one has to wonder how we can reach any outcome other than a Grexit, yet to date 11th hour miracles have occurred.”
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