Today's Eurogroup meeting in Luxembourg is likely to be dominated by the fate of Greece, but many analysts are largely of the view that the meeting will provide no decisive outcome in Greece's struggle to unlock EUR7.2 billion in funds.
In today's meeting Greece's Finance Minister Yanis Varoufakis is going to face his German counterpart Wolfgang Schäuble, and 17 other ministers who comprise the Eurogroup. A recent Bloomberg article points out that Yanis Varoufakis and Wolfgang Schäuble are fierce defenders of polar-opposite economic views. They go head-to-head Thursday afternoon in Luxembourg. How their struggle ends will shape the future of Europe.
JPMorgan: Capital controls risk increasing
There are increasing media reports that capital controls are being prepared for implementation possibly as soon as this weekend should the discussions with Greece not generate a deal.
A report in Business Insider says a possibility of capital controls means a severe lock-down on flows of cash similar to the ones brought in for Cyprus in 2013 — strict limits on the amount that could be withdrawn from banks, taken abroad physically, or passed between international accounts.
The move would slam the brakes on outflows of money streaming out of Greek banks, but it would also make it more difficult for the country to recover economically and remain a functioning member of the eurozone.
Four Eurozone ministers give Athens a final deadline.
"Finance ministers give Greece a final deadline in Greece" reads the headline of an article published in German daily Bild. The article includes statements by finance minister Wolfgang Schäuble of Germany, Johan van Overtveldt of Belgium, Rimantas Šadžius of Lithuania and Slovenia's Dušan Mramor.
The issue is whether Greece " will fulfill its obligations under the current program... Only on this basis we could release the available funds. We are working on the principle that aid will be provided only If Greece implements reforms and fulfill its commitments. These commitments include Greece staying under the umbrella of the IMF, the Fund's contribution to the Greek case is crucial” Schäuble said.