US and Japan Pressure Europe to Reach a Deal with Greece

International pressure is mounting on Greece and its European creditors to reach agreement and steer the eurozone away from a potentially disastrous “Grexit”.

The US treasury secretary, Jack Lew, told Greece’s prime minister, Alexis Tsipras, and its new finance minister, Euclid Tsakalotos, that Washington “looked forward” to a swift resolution to the crisis unfolding in Europe.

Tsipras told the German chancellor, Angela Merkel, that Greece would bring a new proposal to the table at an emergency eurozone summit on Tuesday, days after Greeks voted overwhelmingly to reject the conditions of a previous bailout plan proposed by the country’s creditors.

Lew said he hoped a resolution would “allow Greece to make difficult but necessary fiscal and structural reforms, return to growth, and achieve debt sustainability within the eurozone”, a US treasury statement said.

Japan’s economics minister, Akira Amari, called on Greece and the EU to do everything possible to contain the fallout from the crisis, which on Monday sent share prices tumbling around Asia and saw losses for the euro.

Amari said all parties should strive towards a “win-win” deal that would keep Greece in the single currency, despite Greek voters’ rejection of austerity.

via The Guardian

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.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza