G7 finance ministers and central bankers gather in Dresden later today for a two-day meeting at an interesting juncture for the world economy.
The smart money has always been on a last-minute deal being done to keep Greece afloat with Athens making most of the concessions and the euro zone and IMF bending only a little. But the chances of a car crash are growing as each day passes.
The Greek government states that a cash-for-reforms deal with the EU and IMF can be finalized in the next 10 days but the other side is much less optimistic and there was no sign of a breakthrough at the EU summit in Riga which Prime Minister Alexis Tsipras had been pinning some hope on.
Greek premier Alexis Tsipras is pinning his hopes on using an EU leaders summit in Riga with eastern European partners from Ukraine, Georgia, Azerbaijan and others to strike the broad outline of a cash-for-reforms deal to stave off default.
Reforming the European Union involves more than renegotiating the UK’s relationship with it. That may sound like a statement of the obvious. But in the British debate over staying in the EU the two have virtually become equivalent, largely because David Cameron, the newly re-elected prime minister, has promised to renegotiate Britain’s relationship with the EU before holding a referendum on continued membership.
British Prime Minister David Cameron will hold talks in Scotland with the other big winner in last week’s elections, Scottish nationalist leader Nicola Sturgeon, who has already warned him it cannot be “business as usual” with Scotland.
Greece made a 750 million euros repayment to the International Monetary Fund a day ahead of schedule on Monday but it is not clear precisely how much money Athens has left in its coffers.