Speculation over an outright Greek default – and potential exit from the Eurozone – is on the rise again today following yesterday’s miraculous resolution vote.  Although Greek administrators came to a late hour agreement, submitting their fiscal proposal for a second bailout, it seems it was all for naught.

Following an intense day of meetings, Eurozone finance ministers have left unfulfilled and unconvinced that Greece’s government has the ability to follow through with their proposed austerity measures.  The measures include an aggressive 300 million euros in pension cuts and a 20% reduction in the current minimum wage level.

The most vocal of the naysayers, Luxembourg Prime Minister Jean Claude Juncker noted that recent spats between political leaders is reflective of the government’s inability to compromise on the current situation – and follow through on proposed measures.  After yesterday’s finance ministers’ meeting, Juncker reiterated his belief of “no disbursement without implementation”.  German leaders, also unconvinced, are now asking for deeper austerity cuts – with 325 million euros in budget cuts.  German Finance Minister Wolfgang Schaeuble highlighted the fact that current austerity by the Greek government may be insufficient, resulting in a final debt to gross domestic product ratio that would be 13% higher than previously estimated.

The day’s negativity isn’t improving with Fitch Ratings agency reiterating the likelihood of a Greek default.

As a result, it’s no surprise that the Euro is leading the major currencies lower, falling by 0.76% at 1.3181 in the New York morning.

More on the Euro - Greek Leaders Finally Come To An Agreement, Euro Rises