Greece

The markets may be taking it in their stride so far, but the indications are that a deal between the Greece and other Eurozone governments is unlikely anytime soon. The Financial Times (p.7) offers a neat summary of where we stand this morning ahead of today's meeting in Brussels to discuss Greece's latest request......

It seems like a case of who will blink first, with the new Greek government unable to publicly agree to any deal that compromises the anti-austerity stance upon which it was elected and hawkish Eurozone governments insisting that Greece sticks to the terms of its bail-out package. But Ambrose Evans-Pritchard in the Daily Telegraph (Viewpoint, p.B2) argues that Germany in particular may have too much to lose to allow "Grexit"......

Oliver Kamm in the Times (p.43) goes further, arguing that Grexit would be pretty disastrous for all concerned and given the danger of the high level of bank deposit withdrawals from the country, policymakers are just twiddling their thumbs......