The FTSE was flat in early trading, rising 0.17 per cent by the time of writing. Investors will be watching for the fallout from the latest episode of the Greek tragedy, with both Athens and its creditors trading blows yesterday.
Greece has been misleading its voters over bailout proposals, according to European Commission President Jean-Claude Juncker. Juncker’s comments came as Alexis Tsipras, the Greek Prime Minister, claimed creditors were trying to humiliate Greece.
The Greek government has alledgedly told voters that the country’s creditors want rises in VAT on electricity and an increase in tax on medicine.
Juncker said this would be a mistake and denied any such proposals had been put to Greece.
I am blaming the Greeks [for saying] things to the Greek public which are not consistent with what I've told the Greek prime minister. I'm not in favour… of increasing VAT on medicaments and electricity. This would be a major mistake.
Juncker said the situation would be made easier if Greece’s government was to accurately represent the terms of proposals.
Tsipras said the austerity measures levelled at the country were criminal, in words unlikely to thaw tensions ahead of a crucial few days for Greece. It must strike a deal with its creditors before the end of June, or risk defaulting on its debt.