FXstreet.com (Barcelona) - The main focus in Europe in the week ahead will be upon the Euro Area Finance Ministers meeting on Greece, which is scheduled to be held tomorrow, and the EU Leaders Summit towards the end of the week, which will discuss the EU budget for 2014 to 2020.

According to the BTMU Research Team, “It appears that European officials are close to granting Greece two additional years to meet its targets, and are still working on measures to offer debt relief for Greece favoring lengthening the maturity and interest of loans granted to Greece instead of more significant debt reduction measures.”

Negotiations over the EU Budget which will cover roughly €1.0 trillion of spending are expected to be hard going with the UK and Sweden having called for tougher restraints on spending. Moreover, the FT reported today that EU officials have begun work on a plan without the UK.