FXStreet (Edinburgh) – Jim Reid, Analyst at Deutsche Bank, assesses the recent developments from Greece and glances at the upcoming events.
Key Quotes
“The Greek saga rumbles on and yesterday we heard that the Greek government had submitted two supplementary reform proposals to its Creditors, focusing on the fiscal gap and also a plan for making the country’s debt sustainable”.
“Once again European officials appear to have pushed back on the latest proposals with the EC’s Dombrovskis, Eurogroup President Dijsselbloem and Finnish PM Stubb all expressing concerns over the latest measures, while the FT ran a story saying that the mood of the cautious optimism of the last few weeks is rapidly giving way to ‘fear and suspicion’, suggesting that Athens is intentionally prolonging negotiations to the last minute in belief that creditors may well agree to grant wholesale debt relief”.
“Worryingly, Greek press Ekathimerini reported PM Tsipras as saying that an accord would be possible if Creditors dropped pension cut demands, highlighting that large gaps are still very much present between the two sides”.
“Focus today will be on the ECB’s review of the ELA facility, as well as a potential meeting between PM Tsipras, German Chancellor Merkel and French PM Hollande on the sidelines of the Brussels summit”.
“With hopes that the meeting may result in taking an important step forward, the Eurogroup’s Dijsselbloem has warned that the meeting is not certain to go ahead yet, noting that technical teams are reviewing Greece’s latest proposals ‘and then we can see whether it can take place’.
(Market News Provided by FXstreet)