All the latest economic and financial news, as Greece’s new government plots its next step after its European debt talks roadshow 8.53am GMT Traders in Athens made a cautious start this morning, pushing the ATG index up around 1%.Bank shares, which have been through a stomach-churning ride in recent days, are inching higher; Eurobank has gained 4%. 8.42am GMT The FT has some good news for Greece - apparently the ECB’s governing council was split over Wednesday night’s contentious decision to ban the use of Greek debt as collateral for cheap loans.Frankfurt correspondent Claire Jones reports that national central bank chiefs were fairly evenly split – but under the rolling voting system Greece, Cyprus, Ireland and France didn’t get a vote."@nickkounis: FT reports ECB was split on banning Greek debt as collateral. Reduces risk that ELA will be blocked http://t.co/7MZv659Ik0 8.30am GMT Geopolitical worries have helped to push most European stock markets into the red this morning, with the FTSE 100 down around 0.4%. 8.17am GMT Over in the Wall Street Journal, Stephen Fidler says Europe is pondering how much Greece really means to them.One question European policy makers are asking is whether Mr. Tsipras represents a break to [Greece’s] clientelistic tradition, or whether he will be guided by the business-as-usual principle that “it’s our turn now.”If the former, Greece’s eurozone partners may be more inclined to accommodate its requests provided the government signs up to meaningful reform. If the latter, they may eventually be inclined to take the risk of casting it adrift. The eurozone’s big beasts seem determined to force a quick resolution, rather than accept Syriza’s timetable.Optimists might reflect that Germany, as a negotiating tactic, was always going to make the threat of Grexit, or Greece’s exit from the euro, feel real. Does Germany really want to be seen as responsible for driving Greece out of the eurozone? Probably not. But the pressure being applied on Syriza is hard and has arrived, courtesy of the ECB, earlier than expected.It was not quite Ill Met by Moonlight , the film in which second world war commandos and Greek guerrillas help kidnap a Wehrmacht general. But it was nonetheless dramatic when the Greek and German finance ministers finally met for a showdown in Berlin over the Greek debt crisis.Like the best movie stars, Wolfgang Schäuble and Yanis Varoufakis kept the crowds waiting. And when they finally appeared at their press conference after two hours of talks it was to announce that they were as far apart as ever on how to refinance Athens once its rescue programme expires at the end of this month. If they agreed on one thing, it was that this particular eurozone thriller still has a long way to run. 8.05am GMT Greece and its lenders may be inching towards a deal, reckons Nick Kounis, head of macro & financial markets research at ABN Amro. Here’s a flavour of his research note this morning.Despite this uncomfortable meeting, a deal has recently become more feasible. Greece previously rejected the idea of a Euro-IMF adjustment programme. Yet at the press conference, the Greek finance minister said that the country was looking at ‘a bridging programme’ to tide it through until a new deal was struck. He also said he agreed with 70% of what was in the old programme.We think a new deal will have three pillars. First, a new reform programme, with more emphasis on tackling tax evasion and vested interests, and less on welfare and social spending cuts. Second, debt relief for Greece, perhaps in steps, conditional on reform progress. Help on this front was promised to Greece in November 2012 by the Eurogroup. Third, a lower primary surplus target, which would fit with the lower level of debt and allow less aggressive fiscal consolidation. All these elements look politically feasible. 7.59am GMT Yesterday’s press conference between Yanis Varoufakis and Wolfgang Schäuble made it to the front page of two UK papers this morning:FT: Merkel and Hollande in Putin talks to break Ukraine deadlock #tomorrowspaperstoday #BBCPapers pic.twitter.com/5tjYXhYDhUGUARDIAN: Solution to crisis is in your hands, Germans tell Greece #tomorrowspaperstoday #BBCPapers pic.twitter.com/f8wqmLhm1n 7.55am GMT Good morning, and welcome to our rolling coverage of the eurozone crisis, the world economy, business and finance.While it seems funding will continue to flow in the near term, there will be fears Greece is at risk of plunging into a fresh political crisis should the government not appease the masses with an ideal result from the negotiations. Recent steps also seem to imply European leaders are looking to put more pressure on Greece and accelerate the negotiation process. Continue reading...
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