If Greece fails, it will be the beginning of the end of the eurozone, Greece's Prime Minister warned this morning, as he struggled to reach an agreement with creditors.
In an interview with Italy’s Corriere Della Sera, Tsipras shattered the view that Greece's exit from the euro would be easily manageable suggesting that it would trigger the unravelling of the whole European project.
When asked whether the failure of Greece would also be the failure of the euro, Tsipras replied:
"I think it’s obvious.
It would be the beginning of the end of the eurozone. If the European political leadership cannot handle a problem like that of Greece, which accounts for 2% of its economy, what would the reaction of the markets be to countries facing much larger problems, such as Spain or Italy which has two trillion of public debt?"
He has also claimed that an agreement between Greece and her creditors could be approaching.
But that would require the IMF, ECB and EC to ease their demands on pension reforms, and other proposals which would push Greece deeper into recession.
Meanwhile, the Guardian has reported that European stocks hit one-month low at the beginning of the session.
The FTSEurofirst 300, which tracks the biggest companies across the region, dipped 0.4% in early deals.
The German DAX is down almost 0.5%, pushing the index further into correction territory (down more than 10% from its recent peak).
