2015-06-03telegraph.co.uk

Huw Pill, at Goldman Sachs, said a sovereign default along with a freezing of bank deposits and a parallel scrip currency or IOU are increasingly likely and may even be "necessary" to break the impasse.

...

Mr Dragasakis said Greece cannot withstand further austerity and insisted that Syriza will not accept a deal unless the target for the primary budget surplus is cut to 1pc of GDP in 2015 and 1.5pc next year. The eurozone wants a medium-term surplus of 3.5pc.

While the creditor bloc has tried to maintain a unified front, it is riven with differences. The German coalition itself is deeply split, with the Social Democrats (SPD) expressing open irritation with hardliners in the German finance ministry.



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