The Prime Minister of Greece, George Papanderou, cancelled a visit to the US in order to stay in Greece and take care if business. Papandredou was already in London, and had a series of planned meetings before a conversation with finance minister Venizelos probably convinced him to stay.
Over the weekend, the EU finance ministers could not agree on the next tranche of aid for Greece, and delayed their decision to October. According to some calculations, Greece will run out of money by October 17th. The timetable is becoming very tight.
Last week, 5 central banks, including the Federal Reserve and the ECB decided to supply more US dollar liquidity, in order to help European banks. This could be a preparation for the Big Greek Default. Also Papandreou’s return home could be interpreted as a sign.
It is currently unclear how the recent property tax suggested by the Greek government will be implemented. This tax was supposed to bridge the budget gap, satisfy the EU / IMF delegation and open the door for the next tranche of aid.
These weekend development might weigh on the euro, which managed to consolidate, but didn’t get too far.
For more on the euro, see the euro dollar forecast.
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