16 June 2015

Timeo Danaos et dona ferentes

Down to the wire; The Guardian reports:
... the chances of a Greek default are now higher than they have ever been. The IMF called its negotiating team home from Brussels last week because the talks were going nowhere. Attempts to get them going again were abandoned on Sunday after less than an hour. The rhetoric has become angrier and angrier as positions have hardened.
Normally, the choreography that precedes a euro fudge would see the two sides edging closer together. The officials that prepare the ground for a deal would be piecing together 90% of the final agreement, leaving ministers the other 10% to haggle over on Thursday. That does not appear to be happening, which is why both sides are preparing for a default.
Can it be prevented? Yes, but it would either require the troika to moderate their key demands on pensions, tax and labour market reform, or for Tsipras to cross his red lines on the same issues. Neither looks likely.
Even so, it is difficult to believe that they will not cobble together some kind of agreement that will allow the can to be kicked a little further down the road.

   

No comments: