Greek crisis starts to restrain the recovery

Friday’s Eurogroup meeting did not appear to result in any further progress towards a solution to the Greek crisis. While Greece has found a bit more money down the back of the sofa (or in state entities), there are still no indications of how Greece will meet its heavy obligations in the summer.

What’s more, there were signs for the first time last week that the episode is starting to impede the broader economic recovery across the euro-zone. The downside risks to the consensus forecast of a steady acceleration in euro-zone GDP growth are therefore growing