Tuesday, September 13, 2011

Europe Update

by Calculated Risk on 9/13/2011 05:27:00 PM

There are two key meetings this week: 1) a video conference tomorrow with German Chancellor Angela Merkel, French President Nicolas Sarkozy and Greek prime minister, George Papandreou, and 2) a meeting of European finance ministers on Friday with Timothy Geithner making an appearance.

Also Greece is expected to resume talks with the trioka - European Commission, IMF and ECB officials - in the next day or so.

From the WSJ: Merkel Quells Speculation on Greek Default

German Chancellor Angela Merkel ... stressed that Germany remains committed to financing Greece through the euro zone's bailout funds until Greece can repair its own finances through austerity measures. She gave a thinly veiled rebuke to German politicians, including her own economics minister and Deputy Chancellor Philipp Rösler, who have suggested in recent days that Greece should be allowed to go bust.

"I think we will do Greece the biggest favor by not speculating much, but instead encouraging Greece to implement the commitments it has made," Ms. Merkel told RBB Inforadio
And from the NY Times: Europe Scrambles to Ease Greek Debt Crisis
[T]he president of France and the chancellor of Germany will hold a video conference call Wednesday evening with the Greek prime minister, George A. Papandreou, officials announced Tuesday, with the prospect of a further restructuring of Greek debt hovering in the air.
...
Timothy F. Geithner [will] make a rare, if not unprecedented, appearance at a meeting of European finance ministers, to be held Friday in Wroclaw, Poland.
The Greek 2 year yield is at 76.7%. The Greek 1 year yield is at 134.6%. Ouch.