6 Jul 2015
What lies ahead for Greece now? – DB
FXStreet (Edinburgh) - Analyst Jim Reid at Deutsche Bank gives his opinion on yesterday’s ‘No’ victory in the referendum.
Key Quotes
“With the result, it feels like Tsipras has bought himself a few more days before the economic reality of the situation catches up with him”.
“By the end of the week we may see most ATM’s out of cash, massive pressure on the payment of upcoming public sector wages, tourism issues and wider economic damage”.
“For that reason Tsipras will be keen to move quickly with his new found momentum, but the risk is that the relationship between Europe and Greece has been damaged so much that additional conditions need to be set before any negotiations around a possible ESM program can even begin”.
“The stance that Europe takes from here will be critical in how things develop”.
“Too soft a stance and there is the risk of moral hazard, too hard a stance (possibly by demanding government change) and we may remain at deadlock”.
“So some sort of middle ground will need to be achieved if keeping Greece in the Euro is desired”.
Key Quotes
“With the result, it feels like Tsipras has bought himself a few more days before the economic reality of the situation catches up with him”.
“By the end of the week we may see most ATM’s out of cash, massive pressure on the payment of upcoming public sector wages, tourism issues and wider economic damage”.
“For that reason Tsipras will be keen to move quickly with his new found momentum, but the risk is that the relationship between Europe and Greece has been damaged so much that additional conditions need to be set before any negotiations around a possible ESM program can even begin”.
“The stance that Europe takes from here will be critical in how things develop”.
“Too soft a stance and there is the risk of moral hazard, too hard a stance (possibly by demanding government change) and we may remain at deadlock”.
“So some sort of middle ground will need to be achieved if keeping Greece in the Euro is desired”.