European Council President Donald Tusk said this was now the “most critical moment in the history of the eurozone”.
“The final deadline ends this week,” he said after emergency talks in Brussels.
The BBC reports that the eurozone had expected Greece to submit fresh plans on Tuesday after its voters rejected a deal in a referendum, but no new proposals were tabled.
Greece will receive up to €86bn (£61bn) in loans over the next three years, in return for tax rises and spending cuts.
IMF chief Christine Lagarde welcomed the agreement, but warned Greek debt had become unsustainable.
She said the country needed significant relief “well beyond what has been considered so far”.
“Greece cannot restore debt sustainability solely through actions on its own,” she added.
There was a brief period this morning when market prices were almost determined by non-central banks. Almost. Because shortly before the European market open, a technical failure on the Eurex exchange - Europe's largest derivatives market - prevented trading in euro-area bond futures the day after Greek debt talks collapsed.
Yves here. This post looks at the strictures of the Eurozone (debt to GDP and deficit limits) and not surprisingly concludes that the supposedly independent ECB is making matters worse that a more “political,” as in growth oriented one, would. But depicting central bank independence as detrimental is a novel and important argument.
TOKYO — French President Francois Hollande told a group of Japanese business leaders Saturday that the eurozone debt crisis is ‘over’ but acknowledged that steps to boost the region’s growth and competitiveness need to be taken.
“What’s important for you here in Japan is to fully understand that the crisis of the eurozone is over,” Hollande said in the speech at the Imperial Hotel organized by The Nikkei, a major financial newspaper.
Berlin (AFP) - Germany's hardline finance minister Wolfgang Schaeuble on Sunday hailed a change in tone in talks with Greece over its next bailout but warned Europe would closely monitor the pace of reforms in Athens.
There are two ways to think about why North Atlantic economies are depressed. The first is that would-be spenders (including people and businesses that buy durable capital goods) want to spend less than income earners would earn if there were full employment. The second is that would-be lenders want to lend more than would-be borrowers would want to borrow and than financial intermediaries would be willing to let them borrow if there were full employment. These two ways of thinking about it are, in the math, identical. But they highlight different aspects of the situation.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.This post is a guest contribution by Asha Bangalore, vice president and economist at The Northern Trust Company.