“Grexit risk cut to 25%”

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The Greek government will today submit detailed proposals about how it wishes to impose reforms which were agreed on Friday in exchange for the country´s bailout extension.

There have been concerns that the plans from finance minister Yanis Varoufakis might prove too vague for some of the more hardline elements in the negotiations, an eventuality that could yet scupper the deal. Yet, after the arduous events of last week, it is unlikely that euro politicians will decide to pull the plug on Athens and trigger what would most certainly be turmoil across markets. There may yet be some hard negotiting to be done on the fine print of Greece´s proposals, but Friday´s agreement seems to be the first indication that progress can be made and is preferrable to the uncertainties any alternative would bring about.

Domestically, the Greek government also face mounting pressures. It emerged last night that Manolis Glesos, a senior Syriza politician, was unhappy with the deal, saying that the government were “renaming fish as meat.” There are thought to be misgivings within the Syriza party about how far the Greece side has had to come to reach a deal, yet such concerns will be of little concern to Varoufakis tody as he races to get his proposals approved.

Spanish markets

This week will see the publication of most quaterly reports from companies on Spain´s Ibex 35. Dia, Abengoa and pharmaceutical giant Almirall will all publish their reports today.

The Ibex 35 was up (0.66%) at 10,951.50 while the euro was down against the dollar at USD 1.1342.

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