In These New Times

The planned grexit seems to have fallen through as Tsipras forgets his lines in this Greek drama. A good moment then for the Brits to quietly back off.

Guardian

16th July, 2015

George Osborne has backed down over the use of an EU bailout fund to give an emergency loan to Greece. But the chancellor said there would be an “impregnable ringfence” around the up to £850m of British money in the fund to prevent any losses to the taxpayer in the event of any default.

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The plot thickens. We now have a very interesting coalition openly opposing a deal and, implcitly or explicitly, calling for grexit: the IMF, the British government, Schauble & Co, the left and the right. The Greek people, however, overwhelmingly support remaining in the eurozone and, by the look of it, the majority of Europeans. The call for a haircut, impermissible under EU rules, is unnecessary since it is possible to fudge the issue by endlessly differing payment and lowering interest rates. This is what is already happening according to the European Commission so it may be that the IMF and Schauble are throwing in this red herring simply as a wrecking tactic.

Schaeuble Shrugs Off Greek Vote Saying Euro Exit Is Best

Bloomberg

German Finance Minister Wolfgang Schaeuble told Greece the only way it’ll get a debt reduction is to leave the euro and cast doubt on the country’s ability to even complete negotiations on a third bailout.

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“It must be emphasized that eurozone loans are not an issue for Greek debt sustainability because they have long grace periods … Greece is currently paying neither interest nor principal on the loans,” Dombrovskis told a news conference.

Ekathimerini

15th July, 2015

The European Commission published on Wednesday its assessment of Greece’s bailout request, taking a different view of Athens’s debt sustainability than the IMF, but also signaling a possibility of debt relief.

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Along with the IMF and Cameron opposing this deal, we also have most of the left intelligentsia coming out in concert as eurosceptics in terms virtually indistinguishable from those Farage and Le Pen.

Forbes

15th July, 2015

The Greek debt deal was concluded only two days ago, in the early morning in Brussels. Today is the deadline by which the Greek parliament must pass a long list of legislation required for bailout talks to proceed. But already, cracks have begun to appear in the European establishment’s support for the deal.

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Ekathimerini

14th July, 2015

British finance minister George Osborne has ruled out any financial involvement in a fresh bailout for Greece after suggestions that a mechanism backed by the whole European Union could provide bridge financing for Athens.

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“Unfortunately, the IMF didn’t appear to anticipate the PM’s complete capitulation” 

Clearly, the IMF seeks to wreck the existing agreement. They are in a strong position since Germany have insisted on their participation.Once again, European weakness, due to their inability to resolve these matters internally, has been exposed.

In “Secret” Report Lagarde Says Greece Will Need Massive Debt Relief

Zero Hedge

A divide between the IMF and Europe (read: Germany), regarding writedowns on Greece’s debt to the EU has been brewing for quite some time and recently returned to the international spotlight when, a few months back, the Fund indicated debt relief was a precondition for its participation in any further aid for Athens.