Greece, Germany and France Held Late Night Talks on Debt

Greek Prime Minister Alexis Tsipras held a new round of late-night talks with the leaders of Germany and France and agreed to intensify negotiations with Athens’ creditors ahead of a looming default at the end of the month.

The latest in a run of sleep-defying meetings in recent weeks was partly political theater, as all involved try to show their commitment to a deal – and avoid any blame for failing to avert a crunch that could unsettle the euro and the world economy. But Tsipras again said he saw a solution at hand.

As ratings agency Standard & Poor’s downgraded Greek bonds deeper into junk status, questioning whether Athens can pay its debts, the leftist leader emerged early on Thursday from talks on the sidelines of a summit in Brussels with Chancellor Angela Merkel and President Francois Hollande to express confidence.

“We decided to intensify the efforts to bridge the remaining differences and proceed, I believe, to a solution in the coming period,” said Tsipras, whose first five months in government have brought Greece to the brink of defaulting on payments to the IMF if it fails to secure new EU funding within three weeks.

Merkel had made it clear before the meeting, however, that it was not her and Hollande with whom he must negotiate but with the three institutions representing sovereign creditors – the European Union, European Central Bank and International Monetary Fund. There was no change in that line afterwards:

“It was agreed unanimously that the talks between the Greek government and the institutions should be pursued with great intensity,” a German government spokesman said in a statement that described a meeting conducted in a constructive atmosphere.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.