EU Commission warns Greece could return back to recession.
Headlines from an MNI source at the European Commission:
- Greece could run deficit, return to recession
- IMF wants to remain in Greece if conditions met
"We had to revise the forecasts downwards but I would not call them realistic," the source said. "They are very optimistic ... I wouldn't exclude a sharp revision downward in growth and budget balance once we have a complete picture ... the new Greek government has to take drastic and long-lasting measures and reforms to offset the damage done"
It's a rough day in Greek markets with the stock market down 4.5% and 10-year yields up 56 bps to 11.11% on speculation there will be no deal.
Update: Varoufakis is on the wires saying he expects fruitful talks on May 11 but doesn't expect a deal.
