Investors huddle around Greece crash


Euro coin

With news emerging on Greece’s eurozone/IMF bailout, investors are eagerly awaiting to hear about its exact details, prompting the fragile Euro to stop its freefall against the Dollar.

This euro recovery comes at a good time as worries are prevalent that the Greek crisis will lead to a knock-on effect into other members of the eurozone. Fears regarding the ‘infection’ are so strong that Barack Obama, the US President, made a phone call earlier in the week to Angela Merkel, the German Chancellor, saying that “resolute action” must be taken.

The euro hit new lows on Wednesday when it fell to $1.312, however it did recover to its current standing. Despite the fall and rise, investors are still wary due to the lack of concrete intent regarding the bailout. Greece, the International Monetary Fund and the rest of the eurozone have been discussing the bailout package that is made up of 30billion euros from the eurozone and a further 15billion from the IMF. Greece need to receive at least some of this money before mid-May otherwise it may be forced to default on its debt payments.

It is still unclear as to what part Germany will play in this ongoing drama. Germany is Europe’s strongest economy yet they are hesitant to bail-out Greece completely, and it is thought that they are waiting to hear from Greece regarding the conditions attached to the package and any austerity measures that are going to be set in place.

Whatever the case everyone is united in finding a solution to this problem as quickly as possible, Ms Merkel said: “It is perfectly clear that the negotiations with the Greek government, the European Commission and the IMF need to be accelerated, we hope they can be wrapped up in the coming days.”