€1.6 billion debt default spurs Grexit pressure

No agreement has been made in the Euro group meeting as the creditors rejected the Greek government's proposal.

The Euro group convenes today at 1PM CET in the hope of an agreement.

However, the discussions might well continue on Friday or even until the very last days of June. We still consider a last minute deal as the more likely outcome.

Greece has to repay € 1.6 billion to the IMF on June 30 or face going into default, which could trigger the country's exit from the euro area.

Two or three areas still needed to be addressed, but added that he was confident a deal would be reached by the time EU leaders meet on Thursday, Greece's economy minister Yesterday, said.

The Greek debt issue does not seem to be resolved instantly, political and implementation risks are high and tensions both with creditors and within the government's own majority are likely to appear, as reaching an agreement will require the government to cross some of its red lines.

Macroeconomic assumptions set in the agreement will be the key in assessing implementation risks. The EU summit starting today is set to address further euro area integration.

This is unlikely to lead to dramatic changes in the euro area governance and integration process, as France and Germany in particular want to avoid any measures that would require treaty changes before their general elections in 2017.