European leaders arriving for a summit in Brussels on Thursday reinforced calls for Greece to push ahead with austerity measures in return for further financial aid and called on the country to stand united as opposition to the measures grows.
Financial markets should brace themselves for a restructuring of Greek debt in September, Barry Eichengreen, Professor of Economics at the University of California, Berkeley said on Thursday.
As a two-day meeting of EU leaders gets underway in Brussels on Thursday, analysts expect the summit to provide temporary relief for financial markets with leaders present a united front and insisting they will continue to support Greece, but not much more.
One year after Belgians went to the polls to elect a new government, the suggestion that Belgium is boring has taken on new meaning. Failed coalition talks and political deadlock have become synonymous with the country, and an end to the deadlock looks further away than ever.
Private debtholders, including euro zone banks, should accept a debt extension or other form of "soft default" to alleviate the debt burden for countries such as Greece if Europe wants a solution to the sovereign debt crisis, Bill Gross, Co-CIO of PIMCO told CNBC on Tuesday.
Get the best of CNBC in your inbox