Despite proclamations that Greece is saved and will be able to fight for another day of survival, substantial challenges lie ahead as many Euro Area partners are unconvinced of Greece’s ability to implement potential reforms. Alexis Tsipras is busy trying to quell a rebellion within his own Syriza party after agreeing in principle to the creditors proposal after endorsing a deal that contradicts the values the party was elected upon. Tsipras may be able to reach across the aisle for support from other legislators outside the ruling coalition, however, the mutiny within his own party threatens to unravel the existing government and could potentially lead to snap elections. Outside of Greece, Finland is leading the charge against issuing new loans to Greece after it was disclosed that German Finance Minister Schaueble also opposes any further bailout arrangements for the Greeks. Markets have largely written off the prospect of a deal as the Euro continuing to fade lower.
Obstacles to Deal Remain
Daily Analysis - 14/07/2015