The long-running Greek drama is nearing a potentially catastrophic denouement, likely hijacking the market’s attention away from economic pulse checks on China and Japan this week.
Greece’s Prime Minister Alexis Tsipras submitted a new reforms package Sunday, offering the potential for a last minute deal to break the logjam in talks with the country’s international creditors. Greece desperately needs more aid before it runs out of cash and potentially defaults on loans to creditors.
Euro zone leaders are set to hold an emergency summit on Monday to “urgently discuss the situation of Greece at the highest political level” after Thursday’s meeting yielded no progress, with both sides refusing to compromise over what reforms Greece should make in exchange for more aid. The emergency summit comes just eight days before Athens needs to make a crucial 1.6 billion euro ($1.8 billion) payment to the International Monetary Fund (IMF) to avoid a possible default.