Greece last night missed a deadline to submit their reform proposals for a new deal on its bailout. This was due to late exchanges between Greece and Europe. According to reports the reforms will focus on tackling tax evasion, increasing the minimum wage, free electricity and food stamps.
Eurozone finance ministers will hold a conference today to discuss whether the reforms have the potential to lay the groundwork for a new agreement. If this is the case, the proposal will still require approval from national parliaments, as well as the ECB, IMF and European Commission. This means Greece may not have access to funding until the end of April. Due to the government’s lack of cash there could be uncertainty over emergency lending to Greek banks.
According to Analysts at leading German banks the odds of Greece quitting the Eurozone has fallen. They estimate the chances of a ‘Grexit’ stands at 25% after the Greek government reached an agreement with its creditors on Friday night.
Data out from Germany this morning shows that the economy expanded by 0.7% in the three months through to December. Private consumption climbed 0.8 percent, capital investment rose 1.2 percent and exports jumped 1.3 percent. This has been partly attributed to the trickle down effects from a lower oil price and a weak Euro.
EUR- 10:00 : Eurozone Inflation (CPI) Jan expected to fall to -0.6% from -0.2%
GBP- 10:00 : Bank Of England Inflation report hearing
EUR- 14:00 :ECB President Mario Draghi makes a speech
USD- 15:00 :US Consumer confidence expected to fall from 102.9 to 99.6
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