GREEK BUSINESSES FEAR MORE AUSTERITY - German Chancellor Angela Merkel said last evening she did not want to see Greece being forced out of the euro, warning that it would have "unforeseeable consequences".
This came as officials in Athens said leaders needed more time to assess the proposed deal that would see Greece introduce unpopular austerity and reform measures in return for a €130 billion bail-out.
The president of the Athens Chamber of Commerce and Industry, Konstantinos Michalos, said he hoped for a political decision today.
But Mr Michalos criticised Ms Merkel's recent comments, saying she had spoken a few weeks ago about trying to boost growth in the euro area, but Greeks now faced more and more austerity and no plans to revive growth.
He said Greeks wanted to stay in the euro zone, and it would not serve anyone for a member state to leave the euro at the moment, as this would endanger the whole single currency area.
Mr Michalos said all businesses in Greece were suffering a liquidity crunch, as banks could not provide the services they needed. He said that in the past 15 months, 92,000 companies had closed with 250,000 jobs lost in the private sector.
He said economic policy must be changed or these figures would double this year.
***
NEWS IN BRIEF AND CURRENCIES - Smurfit Kappa has reported earnings growth of 12% to €1 billion and earnings per share growth of 69% to €1 for last year.
Smurfit Kappa also said it was looking for the consent of its lenders to change its senior credit facility agreement - extending its debt maturities.
During 2011, the company reduced its debt level by €358m to €2.75 billion.
On the currency markets, the euro is trading at $1.3283 and 83.47p sterling.
