Hope Springs On Latest Greek Proposal To International Creditors
The emergency Eurogroup meeting ended without any significant announcements, however, there was enough to give the markets hope of a deal later on this week.
European policymakers reacted positively to the proposal offered up by Greek Prime Minister Alexis Tsipras over the weekend.
The proposal does not include pension cuts or reductions in public-sector wages, but it does include proposed tax increases on the wealthy, businesses, and a modest VAT (value-added tax) hike on some items, all of which has been a point of contention.
That the proposal was not rejected out of hand, as were the previous proposals, is a good sign that a deal could be in the offing, hope springs…
European Commission President Jean-Claude Juncker said that the group will work hard to hammer out the details and get a deal this week. Eurogroup Chairman Jeroen Dijsselbloem said the new Greek proposals were a basis to begin the talks in earnest.
Though the Eurogroup meeting did not result in a final agreement between Greece and its creditors, the optimism resulting from the talks reversed the fate of the GBP/USD which was on track to lose 0.30%. At present, Cable is trading near the lows of the day at 1.5810. BOE’s Carney’s testimony Tuesday before the Treasury Committee could influence how sterling continues to perform.
Stay tuned…
HeffX-LTN
Paul Ebeling
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