The president of the European Commission Jean-Claude Juncker is ready to scrap the EU / ECB / IMF troika mission to Greece as a concession to Greece, according to various reports. This would be an acceptance of a demand by the new Greek PM Alexis Tsipras to abolish this.
But what’s next for Greece? The deadline of end-February awaits. Will Greek banks continue receiving aid from the ECB? Will the euro-zone find some compromise?
The current deals end at the end of February and a new way from funding Greece must be found. Greece doesn’t want to leave the euro-zone as it wants to be part of Europe. Germany does not want Greece to leave because having one member leave means the euro is breakable.
An “Alexit” seems to be off the cards.
Eventually, there is a good chance that some kind of patch solution will be found, if we look to past euro-zone decisions.
EUR/USD is currently on the rise, unexcited by Greek news. Should we be worried? I’m not sure.
SYRIZA’s message enjoying popularity
One week after SYRIZA swept to power in Greece, it’s anti-austerity call seems to receive a lot of sympathy.
US president Barack Obama showed sympathy for a recovery in Greece and against austerity. This does not go to directly support SYRIZA but it certainly shows sympathy for the country and probably does not sound so nice in Berlin.
In Madrid, the “Spanish SYRIZA”, Podemos, held a rally in central Madrid attracting hundreds of thousands of people. The party also calls for an end to austerity and an end to the rule of the two mainstream and allegedly corrupt parties.
The concession by Juncker seems like a step forward. Greek officials are meeting their European counterparts this week as negotiations continue.
More: Targeting EUR/USD Downside & EUR/JPY Choppy Range – Dankse
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