tommy271
Forumer storico
Eurozone’s Passion Week Has Come
Rumours that German Chancellor Angela Merkel is no longer opposed to Greece exiting the Eurozone, collapse of Italian bonds and ECB’s intention to cut its government bond purchases have triggered an unprecedented collapse of stock and bond markets in the single currency area.
According to German press, Angela Merkel appeared more conciliatory on a possible exit of Greece from the Eurozone.
However, she denied this possibility and publically insisted that she is completely opposed to a Greek exit because of a possible domino effect.
At the same time, the situation in Italy has deteriorated sharply and seems to put Greek issue at second place of priority.
The interbanking market has frozen, while successive meetings take place in Frankfurt on how to deal the collapse of bank shares.
Sources told Capital.gr that at yesterday’s meeting of Eurogroup Working Group, Greece has been under pressure because of its inability to respond to existing agreements, but the concern is now focusing on Italy, which seems to deteriorate sharply.
The tension is likely to lead to extraordinary conference call of Eurogroup within the week, if politicians and central banks agree on how to deal with the crisis, which has been exacerbated by political instability in Germany and the growing crisis in the European banking system.
EWG members estimate that the situation in Italy could drag the euro area in extremely dangerous territory, threatening even its very existence.
Regarding Greece, the recent interruption of review mission has led to unprecedented tension with unknown consequences, although Brussels rule out any amendment of second bailout agreement.
(capital.gr)
Rumours that German Chancellor Angela Merkel is no longer opposed to Greece exiting the Eurozone, collapse of Italian bonds and ECB’s intention to cut its government bond purchases have triggered an unprecedented collapse of stock and bond markets in the single currency area.
According to German press, Angela Merkel appeared more conciliatory on a possible exit of Greece from the Eurozone.
However, she denied this possibility and publically insisted that she is completely opposed to a Greek exit because of a possible domino effect.
At the same time, the situation in Italy has deteriorated sharply and seems to put Greek issue at second place of priority.
The interbanking market has frozen, while successive meetings take place in Frankfurt on how to deal the collapse of bank shares.
Sources told Capital.gr that at yesterday’s meeting of Eurogroup Working Group, Greece has been under pressure because of its inability to respond to existing agreements, but the concern is now focusing on Italy, which seems to deteriorate sharply.
The tension is likely to lead to extraordinary conference call of Eurogroup within the week, if politicians and central banks agree on how to deal with the crisis, which has been exacerbated by political instability in Germany and the growing crisis in the European banking system.
EWG members estimate that the situation in Italy could drag the euro area in extremely dangerous territory, threatening even its very existence.
Regarding Greece, the recent interruption of review mission has led to unprecedented tension with unknown consequences, although Brussels rule out any amendment of second bailout agreement.
(capital.gr)
.
