12 Feb 2015
Greece’s hopes moved to next Eurogroup meeting – DB
FXStreet (Edinburgh) - Strategist at Deutsche Bank George Saravelos remarked the crucial condition of the next Eurogroup meeting (Monday) for an EU-Greece agreement.
Key Quotes
“The Emergency Eurogroup on Greece concluded late Wednesday evening with little progress being made”.
“Ultimately, the key difference between the two sides is that Greece doesn’t want to commit to the policy conditionality specified under the existing program, while the European side is requesting the opposite”.
“Irrespective of today’s outcome, we now have a little more visibility around how the debate will evolve into Monday’s Eurogroup meeting: the European side is offering a technical extension of the existing program (rather than our initial expectation of a 3rdrd ESM program), with the Greek side desiring maximum flexibility and the least amount of up-front commitments attached to completing the program review”.
“A continuation of the deadlock on Monday will immediately shift focus to
Wednesday’s bi-weekly ECB review of the ELA limits of Greek banks: in the event of failure, we would expect the ECB to become more explicit on the timing of when ELA funding would be withdrawn or capped”.
Key Quotes
“The Emergency Eurogroup on Greece concluded late Wednesday evening with little progress being made”.
“Ultimately, the key difference between the two sides is that Greece doesn’t want to commit to the policy conditionality specified under the existing program, while the European side is requesting the opposite”.
“Irrespective of today’s outcome, we now have a little more visibility around how the debate will evolve into Monday’s Eurogroup meeting: the European side is offering a technical extension of the existing program (rather than our initial expectation of a 3rdrd ESM program), with the Greek side desiring maximum flexibility and the least amount of up-front commitments attached to completing the program review”.
“A continuation of the deadlock on Monday will immediately shift focus to
Wednesday’s bi-weekly ECB review of the ELA limits of Greek banks: in the event of failure, we would expect the ECB to become more explicit on the timing of when ELA funding would be withdrawn or capped”.