Just as we hinted earlier when we reported that the ECB may use the "nuclear option" on Wednesday and yank Greek ELA, here comes German Suddeutsche Zeiting with a report that Eurozone countries have reached a Greek emergency plan (yay)... which calls for the imposition of capital controls on Greece if no deal is concluded by the weekend (oh no).
From SDZ (via Google translate):
The euro partners have agreed in the face of the solidified negotiations with Greece on a contingency plan for Athens. This became known on Monday in Berlin and Brussels. It stipulates that creditors want to give the Greeks initially another chance and wait to see if by the end of the week it is possible to Euro finance ministers to agree with the government in Athens to the corners to meet the current emergency program. The ministers meet Thursday and Friday in Luxembourg.
Elapses this deadline without agreement, to be convened without further delay a special meeting of heads of state and government in Brussels. In an interview for this is Friday night. At the special summit a political solution should be sought again. French President Francois Hollande warned on Monday against the failure of the negotiations. The deadlines were extremely short. "I have often said: caution, we now come in a period that can be turbulent, if no agreement is found," he said during a visit to the air show in Le Bourget near Paris.
- EURO-ZONE COUNTRIES READY CAPITAL COUNTRIES FOR GREECE: PAPER
- CAPITAL CONTROLS TO BE READIED FROM COMING WEEKEND: PAPER
- EURO-ZONE COUNTRIES REACH GREECE EMERGENCY PLAN: SUEDDEUTSCHE
EURUSD dumped on the news...
And rather stunningly, DAX futures spiked on the news (which was somewhat oddly reported as a posiive by Bloomberg)