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The German finance ministry didn’t waste any time to state a clear “Nein” – an outright rejection of the Greek request, which can be certainly seen in Greece as a  capitulation, or at least a climbing down to the previous stance.

However, not all in the euro-zone are in line with the move: Italy’s finance  minister Padoan supports the Greek request. And what does the head of the Eurogroup think? He called a meeting tomorrow but before he saw the paper in depth, the news from Germany came out. Even if he sides with Germany, he was undoubtedly humiliated by the fast and furious German move.

Opposition to the German move also comes from within Germany: the Green party, which is in opposition, says that Schäuble ´s move was “irresponsible blocking tactics”.

Following the German rejection, the Greek government did not respond directly to Europe’s largest power, but basically said that the proposal is “take it or leave it”: either accept or reject it. And in addition, they said that it will show who wants a solution and who doesn’t.

EUR/USD has been moving on the news. We still believe a solution will eventually be found.

More:  Tsipras – Merkel needed for a resolution on Greece