While peripheral listings collapse and tensions push up the Btp-Bund (522 points) and Bono-Bund (635 points) spread, attempts are made from Europe to reassure the markets. In Spain, Economy Minister Luis de Guindos reiterated that the country does not need a real bailout, after the aid plan already approved by the Eurogroup for the recapitalization of its banks.
At the same time, the European Commission reported that the IMF has not changed its position on Greece and that it is confident that the aid tranche will be issued, although it is unlikely to happen before September. The Commission reiterated that Greece must remain in the eurozone, after top German political leaders once again questioned its permanence.
Finally, today's lunch meeting between Commission President Josè Barroso and ECB President Mario Draghi is confirmed. The spokesperson indicated that these are normal contacts.
