- Nicholas Economides, a professor at New York University's Stern School of Business
The Greek debt talks have turned to full-blown crisis, with closed Greek banks, imposed capital controls and the Euro set for a freefall. Greece's parliament has approved a referendum to decide whether to accept the latest bailout terms. Yet, it comes too late, as the vote should be called at least a month ago, and asks the wrong question, as the current bailout programme expires. The move came after the breakdown of aid talks with the international creditors and the ECB's decision to freeze the lifeline to Greek banks. Meanwhile, European officials discussed quarantining Greece from the rest of the currency bloc, while keeping it within the Euro zone. German Chancellor Angela Merkel spoke to President Barack Obama on Sunday, agreeing on the importance of keeping Greece in the Euro. Meanwhile, business confidence in Italy, the Euro zone's third biggest economy, reached almost the highest level in four years, as the biggest employers' lobby expected the economy to grow in 2015 at a faster pace than previously estimated. The Manufacturing Confidence Index, climbed to 103.9 this month, up from a revised 103.4 in May, according to Istat. The employers' association Confindustria said Italy's GDP is likely to accelerate in the second half of the year, ensuring the economy fully recovers from its longest recession on record. Confindustria expects Italy's economic output expanding 0.8% in 2015 and 1.4% next year, compared with the 0.5% and 1.1% respectively that it predicted in December. The economy will benefit from the weaker Euro, cheaper oil prices and the ECB's stimulus measures.
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