Europe, from Athens to London

• The Greek situation advances
• The Juncker Plan too
• Obama urges the British to stay in the EU

Once again, the headlines are riveted on Europe. The Greek Parliament approved the second round of measures paving the way for the opening of negotiations on a third bailout plan (see “Greece: a busy calendar”). The EMS confirmed an agreement in principle and Alexis Tsipras expressed hopes that a definitive agreement could be reached by 20 August. The ECB raised its ceiling on ELA emergency liquidity assistance by EUR 900 m, and Greek banks reopened, although capital controls remain in place. As the Greek crisis becomes less tense, another risk is removed from eurozone growth, which boasts numerous support factors (see “Eurozone: consolidating the rally”). Short-term prospects are upbeat, but longer-term risks persist. There needs to be more convergence between member countries to foster selfsustaining growth. In this respect, high hopes have been placed on the Juncker Plan, which was definitively launched this week: the European Fund for Strategic Investments (EFSI) will be operational as of early fall. Europe must also work towards greater fiscal integration, which President Hollande confirmed by calling for a eurozone government. Against this backdrop, a powerful voice joined the ongoing debate over the UK’s membership in the European Union: none other than President Obama is urging the British to decide to stay in the EU, to preserve its influence on the world stage… and its relations with America.