European Central Bank President Jean-Claude Trichet warned that the banking system’s exposure to Greek debt “is the most serious threat to financial stability in the European Union.”
“European leaders will try and convince Greeks and financial markets when they meet in Brussels today and tomorrow that they have a workable plan to help Athens avoid a debt default,” said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. They’ll use a “mixture of arm-twisting and moral support” to force Greece to adopt further reform.
Source: Bloomberg