Angela Merkel has delivered an unusually sharp rebuke to the Greek government, accusing it of failing to implement necessary structural reforms while insisting a last-minute deal was still possible to keep it in the eurozone.
Alexis Tsipras will travel to Russia again on Friday to meet Vladimir Putin as questions swirl over whether Moscow could extend credit lines to bail out the Greek prime minister’s embattled economy.
While the German chancellor, Angela Merkel, is publicly insistent on reaching a compromise deal that ensures Greece is saved from insolvency, expectation is rising – in Germany and elsewhere – of a Greek exit from the eurozone.
Well, that didn’t last long.
Last-ditch talks aimed at breaking the impasse between Athens and its international creditors have collapsed in acrimony with European Union officials dismissing Greece’s latest reform package as incomplete in a step that pushes the country closer to leaving the eurozone.
George Osborne’s plan to enshrine permanent budget surpluses in law is a political gimmick that ignores “basic economics”, a group of academic economists has warned.
The International Monetary Fund dramatically pulled out of talks with debt-stricken Greece on Thursday after it accused Athens of failing to compromise over labour market and pension reforms.
A vote to leave the EU could cut the UK’s credit rating, according to the ratings agency Moody’s, which has waded into the debate with a warning about rushing the referendum.
Britain’s leading corporate lobby group has insisted the government should press ahead with its austerity drive, despite warnings that another round of deep cuts could dent the recovery.
The pound posted its biggest one-day rise for almost eight years and the FTSE 100 share index jumped 3% on Monday, as traders reacted to an apparent shift in support towards a remain vote in Thursday’s EU referendum.
The French economy minister, Emmanuel Macron, has warned that if the UK leaves the EU, it risks isolating itself as a tiny trading post on the edge of Europe, akin to the Channel island Guernsey.
Leaving the EU would hit British living standards, stoke inflation and wipe up to 5.5% off GDP, the International Monetary Fund has warned with less than a week to go until the referendum.