An EU source reports the Eurogroup meeting will be short

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June 24, 2015
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June 24, 2015

An EU source reports the Eurogroup meeting will be short

Eurogroup meeting reunión

Quick rundown:

Ahead of meetings, Lagarde and Dijsselbloem are said to skipped past reporters on their way to meetings. It’s unusual that they have nothing to say and Dijsselbloem supposedly looked annoyed. Varoufakis also left a meeting with nothing to say.

US stock markets are behinning to turn and yen buying is increasing as tensions mount.

Just in the past few hours, I’d say the likelihood of a deal has fallen from about 90% to 70%.

There are three big snags:

  1. The IMF wants more spending cuts and fewer tax hikes
  2. Military spending
  3. Major disagreements on debt relief

Dombrovskis is on the wires saying it could be a long night of negotiations but both he and Moscovici were still upbeat in their comments, saying there has been progress. On the flipside, the FT is quoting a Eurozone official who said there wasn’t much progress in a meeting with Tsipras.

Update: Austria’s finance minister is on the wires.

He confirms the 3rd point, saying that the biggest problem is that Greece still insists on debt restructuring. He says that would be equivalent to a 3rd bailout. The fin min added they ‘still have a long way to go for a deal.’

Schaeuble also said there has not been much new since Monday.

 

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