Europe markets rally on Greek funding request

London

EUROPEAN markets rallied on Wednesday afternoon after Greece submitted a formal request for temporary funding from the 500 billion euros (S$755 billion) European Stability Mechanism (ESM).

Despite the request from the eurozone bailout fund, however, Germany and other eurozone finance ministers have demanded a detailed proposal for budget and economic reforms by Thursday night. European leaders will vote on them at an emergency meeting on Sunday.

"The Europeans expect that the Greek government will send proposals by Thursday at the latest on how a rescue programme under the umbrella of the ESM might look," Angela Merkel, the German Chancellor, said.

She admitted that eurozone finance ministers were examining plans for Greece to introduce a parallel currency. "We took note of the head of the Eurogroup telling us they are looking at th…