Greek Contagion Checked May Weaken Tsipras’s Bargaining Hand
Greece Faces Tough Week of Decisions as IMF Waits
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Alexis Tsipras’s claim that a financial collapse in Greece would drag down the rest of the euro region is looking increasingly like a hollow threat.
While the yield gap widened between Spanish and German debt after a weekend that saw little progress in talks between Tsipras’s Greek government and international lenders, the increase was only the biggest since May 28. The spread is close to the average of the past year, showing limited contagion compared with the blowout in Spain’s borrowing costs when Greece last faced a euro-area exit in 2012.