Merkel and Hollande Turn Away From Greece
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German Chancellor Angela Merkel and French President Francois Hollande signaled they’ve reached the limits of their ability to safeguard Greece, offering the government no further concessions to step back from the brink.
The leaders of Europe’s two biggest economies gave little reason for hope to Greeks who awoke Monday to find their banks shut and capital controls imposed as the government took steps to avert the collapse of its financial system. Global stocks and Greek bonds tumbled as Prime Minister Alexis Tsipras’s decision to hold a July 5 referendum on the terms attached to rescue aid increased the risk that Greece will exit the euro.