“…Greek hopes of winning the final go-ahead for a new €130bn (£108bn) bailout when eurozone finance ministers meet on Monday could be shattered even though Athens has agreed to further bruising savings.
Angela Merkel’s chief spokesman said after the German chancellor held a conference call with Mario Monti, Italian premier, and Lucas Papademos, his Greek counterpart – that the three were “confident” a deal would be struck on Monday.
The optimism seeped into global markets with the Dow Jones rising towards 13,000 points in New York and the FTSE 100 inching close to the 6000-mark.
But behind the scenes – sources indicated it could be seriously misplaced.
Amid growing evidence of a significant split between Merkel and her finance minister Wolfgang Schäuble on a new Greek bailout -
- some officials spoke darkly of Athens being allowed to default within the eurozone by early summer.
A highly confidential report by the so-called troika of senior officials from the European commission, European Central Bank and International Monetary Fund -
- is said to have concluded that even with the €325m extra savings painfully adopted by Athens this week Greek debt will still be 129% of GDP by 2020…”
(cont..)
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Markets back Greek bailout hopes but German schism could still derail deal | Business | The Guardian.
