Stocks sink as Greek talks collapse; Grexit possibility
European stocks sank on Monday, with Athens plunging by more than seven percent at one stage, after weekend talks between Greece and its creditors collapsed sparking fresh fears of a Greek euro exit.
Negotiations between Greece and its creditors broke down in less than an hour on Sunday, with each side blaming the other’s refusal to back down on certain issues.
On Monday, the EU pressed Greece to match major concessions made by its international creditors.
“It’s not a one-way street,” Eu- ropean Commission spokeswoman Annika Breidthardt told a press conference after saying the EU-IMF creditors have made “major concessions” to the left-wing government in Athens.
The EU executive also said Greece has agreed to budget targets for 2015, but then asked “how credible the commitments are” to achieve them.
With Athens due to repay billions of euros in loans by the end of the month, the latest failure raises the specter of a default, which could ultimately lead to the country crashing out of the eurozone.