June 21, 2011
European stocks rose early Tuesday and the euro stabilized versus the Swiss franc on hopes that euro zone officials will find a way to prevent a Greek default.
Pressures to avoid bankruptcy intensified as rating agency Fitch said it would consider a voluntary rollover of Greek bond maturities – something European officials were hoping to achieve – as a default and would cut the country’s rating.
The new Greek government faces a vote of confidence on Tuesday night, with the outcome critical to the survival of the government, and to the disbursal of loans from the ‘Troika’ of the European Union (EU), International Monetary Fund (IMF) and European Central Bank (ECB).
Persistent protests in Athens’ Syntagma Square show that the Greek people feel increasingly disenfranchised with their political system and analysts told CNBC that the growing separation between the government and the population over austerity could prove ‘explosive’.