Greece and Euro: Back From Brink

Greece seems to have edged back from the financial abyss…again.

On the eve of a large tranche of debt coming due Wednesday, the European Union has handed over the equivalent of 18 million dollars in bail-out money. Plus IMF help should tide over the troubled Greek government for now.

“The first precipice was May 19th,” John Sittilides of Trilogy Advisors told Fox News, “the obligation will be paid off.”

With EU finance ministers meeting today in Brussels, the actions of the international community have stabilized the markets in Europe as well as the common currency, the Euro. Both were down sharply Monday.

“We are seeing more stability,” Bronwyn Curtis of HSBC told us, “People who feared risk have already gotten out.”

Still no analysts feel Europe or the EU is out of the woods. Some have said the long-term stability of the Euro remains in question.

“There are deep-seated problems,” Curtis added, “A lot depends on politics.”

Some predict the Euro will sink to parity with the US Dollar in the coming weeks. The Euro is now roughly worth $1.23. Some do not preclude some countries even falling out of the Eurozon.

“The Euro has been found wanting,” Howard Wheeldon of BGC Partners told Fox.

Meanwhile there is a war of words being conducted between the US and Greece.

Greek Prime Minister George Papandreou was quoted Sunday saying that an investigation into US bank conduct during the Greek troubles was possible and that a lawsuit against certain US banks could not be ruled out.

At the same time the US Senate voted to add an amendment to a finance reform package Monday aimed at blocking US funding of IMF moves to help countries in financial trouble. A move aimed some see at Greece.

According to Fox News freelance Producer Anthee Carassava in Athens, there doesn’t seem to be any “repercussions” in Greece to this.

The Greeks, according to Carassava, are now more taken with the resignation of the Deputy Tourism Minister after it turned out her husband may have tax arrears of nearly $7 million dollars!