Greek Letter: Are the Concessions Enough?

European markets rose on Wednesday after a letter from Greek Prime Minister Alexis Tsipras to creditors boosted hopes of a deal on reforms, but analysts warned that investors could be getting ahead of themselves.

Tsipras sent the letter on Tuesday as part of a request for further financial aid, although it only became public on Wednesday.

The Greek leader appeared to offer some concessions on reform plans, but also stuck to his guns on other proposals, such as maintaining a 30 percent discount on the VAT (sales tax) applied to Greek islands which lenders want abolished.

European equities rallied 2 percent on the news, first reported by Financial Times, but analysts were divided on whether the concessions would be enough for a deal with creditors.


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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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