Week in FX Europe – Netherlands and Germany Unsure About Greece

This week the Greek goverment was very optimistic about his proposed agreement extentions. Politicians from Germany and Netherlands on the other hand have been very vocal in their dissapointment with Greek efforts to push auterity reforms forward and achieve deficit targets. The official statements had two parts. One was: “We want Greece to remain in the eurozone, but…” and the second part was along the lines of “Not doing enough”, “We will wait for troika report”, etc.

Bankia Group the lender whose nationalization pushed Spain on the brink of bailout requirements announced a 7.05 billion euro loss. This could be the trigger that forces the Spainish goverment to formally request a bailout. The ESM funds are still pending Spain's compliance with certain conditions, but analyst have hinted the country will need more. To put things in perspective, Bankia is the fourth largest lender in Spain.

• Olympics a Winner for UK Economy
• Euro Business activity again dips
• Spain's Economy Shrinks amid Bailout talks
• Pound Surges to Near 1.6150 After U.K. Emerges From Recession
• Loans in Eurozone drop 1.4 percent as downturn continues
• Draghi Seeks Help from Germany
• Rajoy wins in Galicia. Catalan test ahead.
• EUR / USD – Slowly Fading Away from 1.30

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