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Germany signals a more flexible stance on Greece – Danske

FXStreet (Barcelona) - The Danske Bank Research Team notes that German lawmakers signalled towards a more flexible stance on Greece, by stating that Greece’s bailout package might be eased after the 25th January elections, with Merkel dismissing suggestions of a Greek euro exit.

Key Quotes

“German lawmakers yesterday struck a more reconciliatory tone on Greece, saying that the repayment terms on the country’s bail-out packages may be eased after the 25 January elections, on the condition that Greece adheres to its austerity commitments, though demands from Greek opposition leader Tsipras that debt be written off are clearly dismissed.”

“Furthermore, Chancellor Merkel yesterday dismissed suggestions of a Greek euro exit. Hence, it seems that the possibilities of a political compromise with a potential new Greek government are being explored, reducing risks of a Greek euro exit.”

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