Greek Prime Minister Alexis Tsipras is rushing back to Brussels on Wednesday to try to rescue a deal that that seemed today less likely than yesterday. And German Chancellor Angela Merkel is facing growing opposition to sending more money to Athens from within her own party.
Hopes rose Monday that EuroZone leaders and Greek officials had reached agreement on a possible deal that would let Greece stay in the euro by kicking the can down the road. Greek savers, either pessimists or realists–pulled another 1.6 billion euros out of Greek banks
Today the European Central Bank extended enough emergency liquidity assistance to Greece to get the country’s banks through today and Monday. The governors of the European Central Bank are scheduled to talk again on Monday to see if the bank will raise the cap again or decide that Greek banks are insolvent and revoke their lifeline
The EuroGroup meeting of finance ministers has ended without a deal today, but there’s at least one more week of frantic meetings ahead that might yet pull a solution out of a hat. Look to Friday’s meeting between Greek Prime Minister Tsipras and Russian President Putin and Monday’s emergency summit of European leaders
One of the puzzles of the Greek debt crisis is why the euro has hung in so strongly even as the crisis threatens the currency’s future. One potential explanation is something that’s being called Grangst.
Maybe the speech was part of an attempt to split the creditor group by attacking the IMF, which has been the most adamant of the creditors in demanding that Greece get specific about its plans for budget cuts and pension reforms. Maybe Prime Minister Tsipras thinks he can get the European Commission, marginally the creditor that seems to be most sympathetic with Greek demands, to broker a political deal without the IMF
Talks between Greece and its creditors collapsed in Brussels last night as Greek negotiators walked out after just 45 minutes. Creditor nations, and the International Monetary Fund, the European Commission, and the European Central Bank said that the newest Greek proposal was not a serious attempt to break the impasse.
After months of saying that there is no Plan B, government representatives preparing for next week’s EuroGroup meeting of EuroZone finance ministers put planning for a Greek default on the agenda for the first time
The most effective pressure looks to be coming from Greek savers who withdrew 4.9 billion euros from Greek banks in April and probably more in May. Deposits last week dropped below 130 billion euros, down from 150 billion in 2112
