Greece Update: Working Group Ends Without Result, However “Statement Drafted That May Be Basis For Compromise”

In typical European fashion, today’s Greek negotiations have ended in a Schrodingerian fashion: on one hands reports are now trickling in that the Greek Eurogroup working group has concluded their meeting after 7 hours without a result…

… while on the other, Market News is reporting that Eurozone deputies have “drafted a statement that could well serve as a basis for a compromise between Greece and the Eurozone, to be examined by finance ministers Friday.”


The positions of Greece and the Eurozone over future financing for Athens moved much closer at a meeting of finance ministry deputies in Brussels, three sources with knowledge of the discussions told Euro Insight Thursday.

One source, a veteran Eurozone official, said, “positions seem to be reasonably close.”

Speaking on condition of anonymity, he added that Eurogroup deputies had drafted a statement that would serve as a basis for a compromise between Greece and the Eurozone, to be signed off subsequently by finance ministers.

The deputies are “close to an agreement but (it is) subject to political discussion,” a second source with knowledge of the talks said.

A third source confirmed that Eurogroup ministers would meet Friday in Brussels for a political discussion and to check the text.

“Everyone has to check with the boss,” he said. Germany’s reaction to the compromise from deputies will come under particular scrutiny Friday given its recent cool reaction to Greece’s recent stance on its future financing.

One can only wonder how much EURUSD or Greek government bonds exposure those unnamed sources with “knowledge” have. In any event according to the same sources, “the draft is ‘broadly’ based on a Greek submission from earlier Thursday, the second source added.”

Of course this is the same draft that Germany threw up all over earlier, and in a leaked letter expressly stated the language that must be included for a compromise to be achieved – language which would crush any anti-Memorandum credibility the Greek government may have wanted to preserve:

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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