Courtesy of Mish.
On Sunday, Greece walked out of talks with the Troika after 45 minutes. Does the rest of Europe want a deal more than Greece?
Regardless, Both Sides in Greek Bailout Crisis Harden Positions.
Both sides in the deadlocked Greek bailout crisis hardened their positions on Monday, a day after the collapse of the latest talks to broker an agreement between the cash-strapped government in Athens and its international creditors.
With two weeks to strike a deal before Greece’s next loan repayment is due, Alexis Tsipras, the Greek prime minister, accused creditors of “political motives” behind the latest rejection of his proposals and claimed to be “shouldering . . . the hopes of the people of Europe”.
Mr Tsipras says further pension cuts are a “red line” that cannot be crossed after successive bailout reductions that have reduced the average pension by more than 40 per cent.
“The Greek government has been negotiating with a specific plan and documented proposals. We will wait patiently until the institutions adhere to realism,” the premier added.
In a rhetorical flourish, Mr Tsipras also said: “We are not simply shouldering a history laden with struggles. We are shouldering the dignity of our people, as well as the hopes of the people of Europe. We cannot ignore this responsibility. This is not a matter of ideological stubbornness. This is about democracy.”
Mario Draghi, president of the ECB, called on Athens to rethink it position urgently and offer a new proposal to reopen negotiations. “While all actors will now need to go the extra mile, the ball lies squarely in the camp of the Greek government to take the next steps,” he said.
François Hollande, the French president, said on Monday that “turbulent” times were looming “if we don’t reach an agreement”. “Let us not waste time and let’s restart the negotiations as soon as possible,” he said on the sidelines of the Paris air show.
Without the endorsement of the bailout monitors the chances of an amicable agreement on Thursday are remote, raising the prospect that eurozone negotiators may resort to the “take it or leave it” strategy used on Cyprus at a eurogroup meeting two years ago.
Let's Play Ball
The appeal by Hollande and the ECB does indeed suggest the creditors want a deal much more than Greece does.
And if so, it appears my thesis about Greece purposely drawing this process out for months without really wanting a deal is the correct one….
