Fiscal mire tops investor concerns
Any progress made by the European Union in its efforts to allay investors’ fears about Greece’s fiscal deficit problems will play a key role in shaping equity sentiment this week. Greek stocks have been pounded recently, shedding 22 percent in the last three months, on fears that the country may go bankrupt or fail to borrow money from capital markets due to its fiscal and debt problems. On Friday, the Athens bourse’s benchmark general index recovered slightly, adding 2.42 percent to 1,927.62 points. German magazine Der Spiegel reported on Saturday that the European Union could provide Greece with up to 25 billion euros in aid, citing suggestions from Germany’s finance ministry. The amount each country would contribute would be calculated according to its relative position in the European Central Bank, Der Spiegel explains. Germany would therefore contribute nearly 20 percent of the potential aid package, the equivalent of up to 5 billion euros, which would be made up in the form of loans and guarantees.
