On Sunday the 14th talks between Greece and its creditors broke down after 45 minutes and Thursday’s Euro group meeting of euro zone finance ministers also failed to make any headway.
The European Central Bank governing council held an emergency conference call last Friday to consider increasing its Emergency Liquidity Assistance to Greek banks, which have had some €3 billion of deposits withdrawn this week. Today there will be an emergency summit meeting of EU leaders to consider the situation.
Yet the growing sense of urgency in the EU corridors of power is not reflected in financial markets. European share price are roughly unchanged on the week and the euro has strengthened by one and a quarter US cents. Sterling was last week's top-performing major currency, strengthening by one and a half euro cents.