17 Feb 2015
Markets taking Greece in its stride - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that the market appears to be taking in stride the latest setback in negotiations over Greece.
Key Quotes:
"The euro has recouped all the ground lost in thin markets late yesterday when the Eurogroup discussions broke down. Each side has their inviolable principles, and yet some compromise has to be found. It might not be possible to do so on the finance minister level, but may require another heads of state gathering to break the logjam."
"We also note that Greece has been an important catalyst for much of the institutional evolution within Europe since 2010. The framework developed so that Greece can keep its official creditors whole, such as the EFSF and ESM, was rolled out to other countries subsequently. In a similar vein, what is being negotiated now is not only about Greece, but about other anti-austerity parties that may come to power later this year in Spain and Portugal."
"Greece has failed to expose a fissure within the European finance ministers. France and Italy appear somewhat more sympathetic but have not broke ranks. The EC's Juncker and Moscovici reportedly proposed an alternative yesterday that had Greek support met a Eurogroup rejection."
Key Quotes:
"The euro has recouped all the ground lost in thin markets late yesterday when the Eurogroup discussions broke down. Each side has their inviolable principles, and yet some compromise has to be found. It might not be possible to do so on the finance minister level, but may require another heads of state gathering to break the logjam."
"We also note that Greece has been an important catalyst for much of the institutional evolution within Europe since 2010. The framework developed so that Greece can keep its official creditors whole, such as the EFSF and ESM, was rolled out to other countries subsequently. In a similar vein, what is being negotiated now is not only about Greece, but about other anti-austerity parties that may come to power later this year in Spain and Portugal."
"Greece has failed to expose a fissure within the European finance ministers. France and Italy appear somewhat more sympathetic but have not broke ranks. The EC's Juncker and Moscovici reportedly proposed an alternative yesterday that had Greek support met a Eurogroup rejection."