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24 Feb 2015
Back to the Greek 'tragicomedy' – Rabobank
FXStreet (Barcelona) - The Rabobank Team comments that with the Greece’s wishlist for the extension program delayed by 24hours, a probable clash today and a fresh risk of ‘Grexit’ would be a firestorm.
Key Quotes
“Yesterday was supposed to see Greece present ‘The Institutions’ with the wish-list of reform commitments needed to win the four-month bailout extension that they don’t really want. However, that didn’t happen.”
“Inauspiciously, that initial step has been delayed by 24 hours to today; and note this before we get to the real nitty-gritty of what the new Greek government can and can’t/will or won’t do in the face of massive popular demands to reverse austerity.”
“A spokesman yesterday claimed that the government list will promise to tackle corruption and reform tax collection, while still increasing minimum wages and restoring collective bargaining for unions. We shall see how that plays with ‘The Institutions’.”
“In other words, for the third time in three trading days, and the nth time in the last few weeks, it’s back to the Greek tragicomedy. However, let’s not forget that there is no truly happy ending here.”
“A clash today, and a fresh risk of Grexit, would be a market firestorm; yet failure to offer Greece significant policy leeway returns us to the status quo ante of depression and deflation – hardly something markets should be cheering either.”
Key Quotes
“Yesterday was supposed to see Greece present ‘The Institutions’ with the wish-list of reform commitments needed to win the four-month bailout extension that they don’t really want. However, that didn’t happen.”
“Inauspiciously, that initial step has been delayed by 24 hours to today; and note this before we get to the real nitty-gritty of what the new Greek government can and can’t/will or won’t do in the face of massive popular demands to reverse austerity.”
“A spokesman yesterday claimed that the government list will promise to tackle corruption and reform tax collection, while still increasing minimum wages and restoring collective bargaining for unions. We shall see how that plays with ‘The Institutions’.”
“In other words, for the third time in three trading days, and the nth time in the last few weeks, it’s back to the Greek tragicomedy. However, let’s not forget that there is no truly happy ending here.”
“A clash today, and a fresh risk of Grexit, would be a market firestorm; yet failure to offer Greece significant policy leeway returns us to the status quo ante of depression and deflation – hardly something markets should be cheering either.”