FXStreet (Barcelona) – A Greece deal looks now even tougher, and with the Eurozone nations moving away from Greece, Grexit risks remain in focus, according to the Rabobank Research Team.
Key Quotes
“I asked yesterday if Greek Prime Minister Tsipras was a real ‘rebel with a cause’, or just a student poster. Well, accordingly to an explosive article in the UK Telegraph, he was aiming to be the latter but is now being forced into the former role. In short, Tsipras is alleged to have wanted to lose the referendum and then hand over the keys of power to someone else to capitulate to the Troika; yet his 61% victory has seen him trapped into taking a more confrontational stance. The rest of Europe, for their part, are also moving further away from Greece following their own electorates and have said in no uncertain terms that we get a deal by Sunday or Grexit.”
“And that deal is apparently now going to be even tougher than the one which was previously on the negotiating table, with tax increases, spending cuts, and no debt relief (despite the leaked IMF report saying Greece’s debt-load is unsustainable) for an economy already in depression. Yet Grexit looks potentially an even worse fate both for Greece, and potentially for the Eurozone itself on several levels. So, five days – at most – and counting.”
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