Global Markets Worry That Wednesday's Meeting Will Leave Greece Without Funding

As lawmakers butt heads over Greece’s bailout program, worries about the stability of the eurozone economy are growing. Over the weekend, Greek Prime Minister Alexis Tsipras announced his plans to reverse around a third of the nation’s austerity measures despite the nation’s creditors’ warnings against breaking out of its bailout plan, suggesting that he is not willing to compromise.

Greece On Thin Ice

On Monday, Greek markets fell to new lows after Tsipras announced his plans to raise the nation’s minimum wage and cut out an unpopular property tax that was introduced as part of the nation’s austerity measures. Tsipras is set to meet with EU finance ministers on Wednesday, where they will discuss how to proceed. If Tsipras does not accept the terms of Greece’s bailout program, the next installment of funds will not be delivered at the end of February, which will leave the nation in dire need of cash.

Global Repercussions 

Greek markets aren’t the only ones suffering under the weight of the ongoing power struggle. US markets and Asian markets have also felt the pressure as worries grow that Greece will soon exit the eurozone. On Monday, British finance minister George Osborne told Bloomberg that the chances of a “very bad outcome” are rising despite international calls for the two to find common ground.

Greece Has A Backup Plan

However, both sides look prepared to hold their ground. On Tuesday, Greek Defense Minister Panos Kammenos threatened to look to other nations for help if EU aid did not come through. He highlighted the nation’s controversial ties with Moscow by saying that Athens was willing to consider asking for help from Russia. Kammenos also suggested that Greek policymakers would consider requesting aid from the US or China as well, but reiterated his hopes that it would not come to that and EU finance ministers would agree to a deal.