Greece & the ECB both have a lot more work to do

The more detailed list of proposed reforms submitted by Greece last week potentially provided the basis for an agreement that will allow it to meet its near-term financial obligations. But the tussles over Greece’s bailout payment are likely to prove a minor skirmish compared to the main battle over a lasting solution to Greece’s outstanding debt burden.

Meanwhile, suggestions that the ECB’s QE programme may end early are, themselves, premature. We think that the full programme – and perhaps more – will be needed to revive the economy and March’s ECB minutes showed that a majority of Governing Council members agree.