18 May 2015
Time is running out for Greece – DB
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, reviewed the current scenario in Greece and the upcoming events.
Key Quotes
“With an EU leaders summit in Riga scheduled for Thursday and Friday, we should have a good idea of where current negotiations stand by the end of the week”.
“Talks may well pick up in pace over the next few days with a spokesman for the Syriza party saying on Greek TV (Mega) that ‘we’re striving for a mutually beneficial agreement by Friday’ while pushing the party line that ‘our mandate from the Greek people is to reach an agreement where we stay in the euro area without harsh austerity measures’.
“Comments from the ECB’s Mersch saying that ‘we are in an endgame’ and that the situation is ‘not tenable’ will only add to the pressure while German Economy Minister Gabriel has once again reiterated that a third aid package for Greece is only possible if reforms are implemented”.
“So with an end game appearing to creep closer now, any disbursement of funds will be unlikely unless a Staff Level Agreement and some sort of implementation of an agreement through Greek parliament is achieved. As it stands, a referendum is a very real possibility with this having now also been mentioned by both Greece and its creditors”.
Key Quotes
“With an EU leaders summit in Riga scheduled for Thursday and Friday, we should have a good idea of where current negotiations stand by the end of the week”.
“Talks may well pick up in pace over the next few days with a spokesman for the Syriza party saying on Greek TV (Mega) that ‘we’re striving for a mutually beneficial agreement by Friday’ while pushing the party line that ‘our mandate from the Greek people is to reach an agreement where we stay in the euro area without harsh austerity measures’.
“Comments from the ECB’s Mersch saying that ‘we are in an endgame’ and that the situation is ‘not tenable’ will only add to the pressure while German Economy Minister Gabriel has once again reiterated that a third aid package for Greece is only possible if reforms are implemented”.
“So with an end game appearing to creep closer now, any disbursement of funds will be unlikely unless a Staff Level Agreement and some sort of implementation of an agreement through Greek parliament is achieved. As it stands, a referendum is a very real possibility with this having now also been mentioned by both Greece and its creditors”.