The failure of the Eurogroup last week to agree even on steps for further discussions on Greece does not bode well for the emergence of a full solution at Monday’s meeting. This could prompt nerves over whether the ECB will cut off emergency funding to Greek banks on Wednesday.
Even if a plan is agreed, it is likely only to tackle Greece’s near-term financing requirements and hence kick the can down the road. Finding a lasting solution to Greece’s debt burden that would guarantee its future inside the currency union will be a much bigger challenge.
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