Barclays comment following Tuesday's Eurozone meeting:

  • We retain our view that EMU exit is the most likely scenario
  • Agreeing on a programme on the basis of Greek reforms in exchange for European-OSI with the current Greek government is at this point extremely difficult
  • The strong rejection by the Greeks at the referendum sends the message that a deal with the Institutions is not wanted on the terms presented over one week ago
  • An improved deal for the Greeks would be a very difficult sell at home for EA countries, especially for Germany to get it through the Bundestag or in Spain ahead of the general election