The European debt crisis has accelerated at the wake of the new quarter. Here is a recap of all the latest news and the next critical known events.
EUR/USD plunged by around 200 pips at the end of a full global trading day.as bad news continued pouring from the old continent. Here are 8 highlights:
- Report: Greek prime minister considers quitting.
- French-Belgian bank Dexia is in danger of bankruptcy. This large bank might have a leverage rate as high as 73:1 according to some calculations. Even more conservative numbers show that the situation is dire.
- No agreement on next tranche of Greek aid meeting of European finance ministers.
- Greek government offered a new budget for 2011 and 2012. Despite austerity measures, even the best promises fail to keep up with the plan the country committed to.
- Leveraging of the EFSF bailout fund strictly denied across the continent. This tool could be used to defend Italy and Spain.
- A member in Germany’s ruling party says that Greece is bankrupt.
- Slovak finance minister suggests that the continent should prepare for a Greek default.
- Slovakia has yet to vote on the July 21 decisions regarding the EFSF – powers to help banks and buy peripheral bonds.
- Upcoming weekend: High level talks in Europe and EU / ECB / IMF troika set to conclude talks on Greece.
- October 11th: Slovak parliament is set to approve new EFSF powers. No majority yet.
- October 13th: Greece hopes that the next tranche of aid will be approved by then.
- October 14th: Estimation as to when Greece runs out of money.