Shambles as Greece stalls again
GREEK politicians exasperated observers and stakeholders last night with yet another delay to crunch talks over a bailout package needed to avoid a default next month.
A party official blamed this latest missed deadline on a late arrival of the bailout document: “Political leaders will not have the time [yesterday night] to assess the measures.”
Yet there are fears of lingering disagreements over necessary austerity measures, after conservative leader Antonis Samaras voiced opposition to planned cuts to pensions.
The euro lost some of its gains against the dollar after news of the delay broke. Analyst Louise Cooper from BGC Partners said that markets are not pricing in the real severity of the ongoing debt crisis.
“This [delay in the talks] doesn’t surprise me at all,” Cooper said. “Eurozone politicians seems to be getting as frustrated as we all are with the Greek political class.”
Talks are expected to resume this morning with Prime Minister Lucas Papademos remaining hopeful of finalising a deal to present to Eurozone ministers by tonight.
Yet even if a resolution is found, analysts remain sceptical that the deal can last. “They come up with grandiose announcements, but when you look at the detail you think – ‘oh there’s not much there’,” Cooper said.
And Capital Economics added in a note: “Even if a second Greek bailout deal is soon agreed and implemented, it may start to unravel before too long, prompting a second more disorderly default. In such a scenario, we think that Greece may end up leaving the Eurozone too.”