Tensions between Germany and Greece are high as Eurogroup negotiations remain stalled and no imminent compromise seems likely. As the final day of negotiations with the Eurogroup begins, Greece is standing strong in its demands to ease the burdensome austerity measures as the nation seeks to escape years of economic contraction. Germany has resolutely vetoed the latest Greek proposal for a loan extension after years of castigating the Greeks for their profligate borrowing habits and relaxed tax collection attitude. As Greece burns through remaining available cash, the ECB expanded its Emergency Loan Assistance program to Greek banks by €3 billion as depositors pull funds ahead of Monday’s bank holiday. To date, Greek bank customers have withdrawn collectively over €25 billion since the beginning of the year, exacerbating the funding shortage facing regional banks. Tax revenue shortfalls are intensifying the situation further and unlikely to abate regardless of the decision arrived at between Greece and the Eurogroup.
Germany Refuses to Compromise
Daily Analysis - 20/02/2015