Greek withdrawal from the eurozone

The European Union is aiming to clinch an interim debt deal with Greece at a meeting of eurozone finance ministers on Monday, with "low expectations" for a breakthrough at meetings of ministers and EU leaders this week.

Greek bonds and stocks rebounded on Tuesday ahead of an emergency meeting of eurozone finance ministers that some hope could be the first step to finding an agreement to ease the standoff between Greece and its lenders.

By Max Julius & Lucy Meakin

The threat Greece poses to Europe may be gaining force through investor complacency.

Chancellor of the Exchequer George Osborne said the danger of a miscalculation leading to a ?very bad outcome? between Greece and the euro area is increasing, and the Group of 20 finance ministers are urging a solution.

British Prime Minister David Cameron chaired a contingency meeting on a possible Greek exit from the eurozone with Finance Ministry and Bank of England officials on Monday, his spokesman said.

Speaking to reporters, the spokesman said on the risk of financial market contagion, ?It?s something we want to be vigilant about.?

[Reuters]

A technical team from Greece will open talks about economic reforms this week with experts from its international lenders, the European Union, the European Central Bank and the International Monetary Fund, EU officials said.

The head of eurozone finance ministers urged Greece on Monday to "stop wasting time" and buckle down to serious talks and implementation of a reform programme to secure urgently needed fresh funds from its international creditors.

The European Union?s chief executive warned Greeks yesterday not to expect the eurozone to bow to leftist Prime Minister Alexis Tsipras? demands in a growing confrontation over Athens? debt crisis.

British Prime Minister David Cameron chaired a contingency meeting on a possible Greek exit from the euro zone with finance ministry and Bank of England officials on Monday, his spokesman said.

Speaking to reporters, the spokesman said on the risk of financial market contagion: «It's something we want to be vigilant about».

The Obama administration is pushing eurozone leaders to compromise more with Greece's new government as fears grow that a protracted budget stand-off could damage the global economy, the Financial Times reported on Sunday.