There is one day to go before Greek Prime Minister Alexis Tsipras is supposed to meet EU bigwigs in a push for a political agreement on cash-for-reforms. Oneﾠglitch, though: the EU has only just received Tsipras’s new proposal, one that was supposed to have been handed over on Friday. Germanyﾒs Angela Merkel, Franceﾒs Francois Hollande and European Commission President Jean-Claude Juncker are not being given much time to prepare for their chat with the Greek leader.
Last night, after Greece’s new Finance Minister Yanis Varoufakis met Mario Draghi, the European Central Bank cancelled its acceptance of Greek bonds in return for funding, shifting the burden onto Greece’s central bank to finance its lenders, the latest reverse for the country’s new government.
Greek Prime Minister Alexis Tsipras will visit Rome for talks with Italy’s Matteo Renzi and will be met there by his finance minister, Yanis Varoufakis, who has already been to London and Paris to try the scope for a new debt deal for Greece and reassure investors that there won’t be a default.
So we’ve got the fresh Greek elections we expected and markets, despite the inevitability that we would get here, have reacted with some alarm. European stocks have shed around 1 percent, and the harbour of German Bunds is pushing their futures price up in early trade. The Greeks will try to form a caretaker government today to see them through to elections expected on June 17.