tradingfloor.com Eurozone Macro Focus. 06/06/11.

Greece passed review - now what?

The much awaited review of Greece’s financial situation by the European Central Bank, European Commission and International Monetary Fund has drawn to a close. The final touches are now being made to fiscal plans before they are presented to the Greek Parliament for approval and then European Union leaders can hopefully finalise a new bailout package when they meet in a few weeks time. But is there now a perception that Greece has done enough so that the stirred up dust of concern about Eurozone sovereign debt can at least for now settle? And is the approval of the next installment of the existing EU-IMF loan due later this month and then a new bailout package more or less a done deal, or do the approval processes both at a national and European level still pose huge hurdles for Greece to overcome? Steen Jakobsen, chief economist, Saxo Bank gives his view on all of the above.