This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: 6 °C Sunday 29 March, 2020
Advertisement

Greece's relationship with the euro is hanging by a thread

The IMF last night walked away from talks on the future of the Greek bailout, which has hit the euro hard in international trading.

Happier times for Greece and the Euro(s).
Happier times for Greece and the Euro(s).
Image: Mike Egerton

GREECE’S FUTURE IN the euro is in further doubt as its creditors pile pressure on Athens to reach a deal on its debt.

The IMF last night walked away from talks on the future of the Greek bailout, which has hit the euro hard in international trading.

In Tokyo this morning, the single currency was at $1.1255 and 139.05 yen, against $1.1260 and 139.00 yen in New York.

The IMF says that the “ball is very much in Greece’s court right now”, adding key disagreements were on pensions, taxes and financing.

Greece must reach a compromise with its creditors — the IMF, European Commission and European Central Bank — before the end of the month to unlock much-needed cash to service its debts. Failure to do so will lead it to default and possibly exit the eurozone.

The IMF is demanding huge reforms and concessions from Greece, but the hard-left Syriza party, which swept to power promising a renegotiation of the €240 billion bailout, will not want, and may not be able, to deliver such changes.

Without fresh external funding when the bailout expires on June 30, cash-strapped Greece is set to default on its debts, meaning it could crash out of the eurozone despite benefitting from two international bailouts since 2010.

EU president Donald Tusk issued an unprecedented warning to Greece Prime Minister Alexis Tsipras, telling the Greek government to stop “gambling” and saying the Eurogroup meeting next Thursday would be “really crucial” and “decisive”.

Read: What is the secretive Bilderberg Conference – and why has Michael O’Leary been invited?

Read: ‘The day is coming that someone says the game is over for Greece’

  • Share on Facebook
  • Email this article
  •  

Read next:

COMMENTS (95)

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

    Leave a commentcancel