A new eurozone crisis looms as Greece's leftist forces attempt to form a government opposed to the country's bailout, while Spain signals it is ready to rescue ailing banks and Japan urges France to stick to reforms.
Odds of a lasting coalition are slim given the massive vote against the austerity coalition. Fotis Kouvelis, SYRIZA party leader and second place finisher in the elections repeated his position that cooperation with New Democracy and PASOK was not in his intentions.
Moreover, Greece's Democratic Left party refuses to join any pro-bailout coalition.
Now that Germany has agreed to an extension, allegedly with no more money on the table, Spain confirms what we all knew would happen, Third Greek Bailout Under Discussion. Euro zone countries are discussing a third bailout for Greece worth 30 billion to 50 billion euros, Spain's economy minister said on Monday, as Athens sought to quell fears it might run out of money before the end of March.
Slovenia’s six-day-old government is being urged to prevent the nation becoming the euro region’s next bailout battleground.
Prime Minister Alenka Bratusek’s Cabinet must quickly carry out a plan to revamp the country’s ailing lenders, the central bank said yesterday. The former Yugoslav nation needs about 3-billion euros (US$3.9-billion) of funding this year, while banks need 1-billion euros of fresh capital, the International Monetary Fund said last week.
BRUSSELS: Greece and its international creditors are making progress towards finalising a third bailout accord designed to keep Athens in the eurozone in return for yet more tough economic reforms. Officials believe an agreement on terms for the deal can be reached soon, possibly on Tuesday, and end a long-running crisis which has raised serious concerns about the future of the single currency. - What is being discussed in Athens?
ATHENS: Greece prepared today to restart its struggling economy with a revamped government, a bank reboot and a new round of tax hikes agreed after months of fraught confrontation with its creditors. Banks are set to reopen tomorrow after a three-week shutdown estimated to have cost the economy some 3.0 billion euros (USD 3.3 billion) in market shortages and export disruption. Crisis-hit Greeks will also have to endure widespread price hikes with a broad batch of goods and services -- from sugar and cocoa to condoms and funerals -- now taxed at 23 per cent, up from 13 per cent.
Athens (AFP) - Greece's parliament will try to elect a president on Monday in a last-ditch bid to avoid snap general elections that could bring the hard-left to power and spark new concerns over the eurozone economy.
The ECB stepped into the fray once again today but the the results of the Spanish debt auction today speak for themselves. The rate on 10-year bonds is close to touching the 7% mark.
The BBC reports on the "Dreadful Result"
The Spanish government sold 3.56bn euros (£3.04bn; $4.79bn) worth of bonds out of a maximum target of 4bn euros.
The auction attracted bids worth 1.5 times the securities offered. The so-called bid-to-cover ratio was down from 1.8 in October.