Eurozone finance ministers are stepping up the pressure on Greece, hoping to ensure that measures proposed by the fiscal agreement submitted last week will be implemented without any disruptions.  Even as Greek officials remain committed to implementing additional austerity measures – as asked for by European officials – there continues to be a delayed response by finance ministers in the region.  The delay has cost the zone a decisive meeting that was expected to be held on Wednesday, but was cancelled to afford policymakers more time to evaluate the proposal.

At the heart of the discussion is a proposed creation of a fund – that will either be separated from other Greek government coffers to house the bailout or make payments.  The segregated account could be controlled by European officials, making sure that all obligations are paid for and in good standing.  However, the notion has raised some concerns by Greek officials – seeing the move as one based on total distrust of the Greek government.  Wealthier nations have been backing the approach as leaders in countries like Germany and Finland are growing weary of housing excuses by Greece for missing deficit targets and bond payments.

Additionally, European leaders have considered postponing the payments until after Greek elections in April.  This would not only ensure that the fiscal measures set forth will be implemented, but also not give the incoming administration the excuse for backing out.

Although viable, the latter isn’t going to work for the markets.  Greek payments for obligations of 14.6 billion euros comes due on March 20, before the elections.  A miss there would constitute default, raising the attention of global credit agencies.

With further delays, the Euro grows weaker by the day against the US dollar.  Since hitting the 1.3300 exchange rate, the single currency has plummeted to a 1.2975 low.  A rebound now would be supported by speculation for a meeting scheduled for Monday.  At this upcoming meeting finance ministers have promised a resolution – hopefully in time for month’s end activity.

More on the Euro - Why Eurozone Leaders Shouldn’t Wait On Greece