MADRID | By JP Marín Arrese | Attempts to convince Tsipras and his colleagues to call off their open mutiny against the discipline imposed under the Greek bailout seem to be doomed. The Greeks bet on a strategy that forces European partners to cave in, should the prospect of huge turmoil materialise. After all, they are fully aware that Greece will prove unable to repay its debt unless it grows at 7% rate for the coming 30 years.
MADRID | By Sean Duffy | Today is a massive day for the euro zone. The outcome of negotiations between Greek politicans and European bosses will be closely monitored by markets and euro zone partners alike. With Greek banks under pressure, a deal needs to be agreed soon.
MADRID | By JP Marin-Arrese | European governments are openly expressing dismay at the Greek election outcome. They have waited quite a long time to convey their congratulations wishes to Tsipras, the new elected Prime Minister. Berlin and Brussels stressed that debt restructuring was out of question while reminding him of the need to keep pledges from former governments as a pre-condition for securing financial support. Yet, they should come to terms with him, the sooner the better, as a thoroughly deceived and frustrated European Council member can inflict damage to EU action.
MADRID | By Sean Duffy | Investors are expecting continued falls in the value of Greek bank shares and indeed the value of the Athens stock exchange. That is due to the fact that the new Government of Alexis Tsipras appears to be on a collision course with the country’s creditors, something that may spook investors in the weeks ahead should agreement not be forthcoming.