Finance ministers from the 17 eurozone countries agreed this week that it's time to make contingency plans in case Greece drops out. While some leaders—like new French President François Hollande—have floated offering eurobonds to struggling member states like Greece and Spain, German Chancellor Angela Merkel is standing her ground. "We want Greece to remain in the eurozone," Merkel said after yesterday's European Union summit. "But the precondition is that Greece upholds the commitments it has made."
All eyes are on June 17 now, when Greece's next round of elections will occur. If the left-wing parties solidify the gains they made in the last election and a firm legislative rejection of the eurozone bailout plan is the result, it is hard to imagine an outcome not ending with a Greek exit from the currency. Currently, the top left-wing and conservative party are neck-and-neck in the polls. For now, the European leaders haven't made any firm decisions on eurobonds or other potential ways forward, and the rest of the financial world waits, more than a little worried. Yesterday, the euro dropped to $1.26—its lowest level against the dollar since July 2010.
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Chart of the Day
The United States has one of the cheapest snail mail systems in the world with our 45 cent stamps. Britain, on the other hand, has seen prices climb 122 percent over the past decade.
Reason to Get Out of Bed in the Morning
Next Friday is jobs numbers time, and forecasters looking at dropping jobless claims think May's numbers could improve on April's sluggish pace.