Optimism For Greek Deal Grows

There had been substantial progress since Tuesday in negotiations between Greece and the “troika”—said Jean-Claude Juncker, the Luxembourg prime minister leading the euro-zone ministers’ meetings.

However, German, Dutch and Finnish governments are still concerned that a future Greek government, likely led by Mr. Samaras, could backslide on the commitments to follow the austerity measures.

To provide assurance to the lenders, the two party leaders in Greece’s ruling coalition, Mr. Samaras and Mr. Papandreou, pledged in a signed letter their future adherence to the objectives, targets and key policies of the new bailout and committed to additional budget cuts of 325 million euro for this year.

According to the European ministers, before the final agreement could be reached, it is necessary to make sure that servicing the debt would be a top priority for Greece. Mr. Juncker said he was confident “all the necessary decisions” could occur when the finance ministers reconvene in Brussels on Monday next week.

Source: Wall Street Journal

This article 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 Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.