European sovereign debt crisis

By Dimitra Manifava

Real per capita private consumption in Greece remained at relatively high levels last year, even if it was reduced due to the financial crisis, according to analysis issued by Eurostat, the official statistical office of the European Commission.

Reuters reports that top EU officials have for the first time discussed the possibility of a Greek default, with three main scenarios emerging. The least likely, according to reports, is a deal to free-up bailout funds in time to meet all of Athens’ June obligations to creditors, particularly the IMF.

Greece submitted on Tuesday a revised list of reforms, which the country has to fulfill in order to be granted further bailout by its international creditors.

This happens a day before Greek Prime Minister Alexis Tsipras is to meet German Chancellor Angela Merkel and French President Francois Hollande, daily Kathimerini reports.

European bankers and officials sought to minimize the wider risk from a possible Greek default as talks about the country’s fiscal future remain deadlocked, with both sides waiting for the other to blink first.

Prime Minister Alexis Tsipras had warned foreign officials that Athens would not be able to pay the 750 million euros ($845 million) due this month to the International Monetary Fund, Greek newspapers said May 17.

Greece has paid some EUR 750 M in debt interest to the International Monetary Fund (IMF), averting the prospect of default, Reuters reported.

"The order to pay the IMF has been executed," the newswire quoted  a senior Greek finance ministry official as saying on Monday, a day before the payment was due.

By Katerina Sokou

IMF chief economist Olivier Blanchard on Tuesday expressed hope that there will be an agreement with Greece, stressing that a Greek exit from the eurozone would be particularly painful for the country.

By Manoj Kumar

Greece needs to implement structural reforms, International Monetary Fund Managing Director Christine Lagarde said on Monday, echoing other international creditors who have urged Athens to implement reforms to secure urgently needed funds.

Greece has railed against what it sees as German dominance since the 2010 start of the eurozone financial crisis, but antagonism between the two countries can be traced back to the 19th century.

Historians point to the mid-1800s for spurring resentment in a newly-independent Greece, when a king from the southern German region of Bavaria ascended to the Greek throne.

The "Brussels Group", consisting of low-ranking officials of foreign institutions, are in Athens on Thursday to collect data on the Greek economy.