EuroZone Officials Meet to Bring Greece Back to Negotiations
July 07, 2015
Eurozone officials met today in an urgent effort to get back to the negotiating table on Greek bailout funding, pushing for new proposals from Prime Minister Alexis Tsipras.
• Eurozone officials met today in an urgent effort to get back to the negotiating table on Greek bailout funding, pushing for new proposals from Prime Minister Alexis Tsipras. The move comes after Greek voters overwhelmingly rejected creditors’ austerity measures. Time is running out before Greece’s banks run out of cash, potentially pushing the already suffering country into further economic meltdown and an exit from the euro. But officials warn a solution won’t come immediately, foreseeing more lengthy talks before any deal on how to keep Greece in the Eurozone can be sealed. Many Eurozone politicians have stood behind the pension cuts and tax increases voters have rejected. Without a new bailout deal, Greece faces a default July 20th on a $3.9 billion bond repayment to the European Central Bank. [WSJ]
• Talks between Iran and six world powers on a final nuclear agreement will extend past their Tuesday deadline. Negotiators from the U.S., Britain, Germany, France, Russia, and China are trying to strike a deal to cut off Teheran’s path to a nuclear weapon in exchange for lifting sanctions. But the sides have encountered several last-minute obstacles, including the scope of inspections and the pace of sanctions relief. The delay raises pressure on the Obama administration, which had been hoping to submit a deal to Congress by July 9th and start a 30-day clock for lawmakers for review. [The Hill]
Economic Indicators & News
• Fueled by a drop in exports, which could elevate concerns of weak overseas demand and a strong dollar, the U.S. trade deficit increased to $41.9 billion in May. As the dollar has strengthened and Europe’s economy has been on shaky ground, U.S. exports have been less competitive. The drop in exports highlights a change in America’s recovery from recession in which the economy has relied more on domestic drivers like construction and services, rather than export-led industries such as manufacturing. [NYTimes]