Late Monday night, the European Commission approved Greece’s revised plan for the country’s bailout.
Now it is the turn of the European Central bank and the International Monetary Fund, the 2 other institutions that are involved in the Greek bailout programme.
The EC announced that the latest Greek reform list that will need to be approved by all 3 institutions was, according to them, “sufficiently comprehensive”.
Following a breakdown last week between Greece and Germany, Greece was given the weekend to come up with a new list of reforms that would be able to add up financially to meet the requirements of the debt repayment.
The FT reported an official as saying, “In the Commission’s view, this list is sufficiently comprehensive to be a valid starting point for a successful conclusion of the review, as called for by the euro group at its last meeting. We are notably encouraged by the strong commitment to combat tax evasion and corruption.”
Tuesday afternoon is the date set for the significant teleconference involving finance ministers. If the reform list is agreed in this conversation, the plan will then have to go through further approval by several parliaments in the Eurozone, and it will need to be finalized by both the ECB and IMF.
On hearing the news, stocks rallies on the Greece20 [FTSE ATHEX20] up 33 points from opening of trade after the Greek Bank Holiday. After a reserved opening on the France 40 [CAC], the index saw slight movement up on the news, rising to 4862 from 4855. The Germany30 [DAX] is in a similar mode with slight rises in today’s trading from 11118 to 11146.
MT4 chart: Greece20
MT4 chart: France40
MT4 chart: Germany 30
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