September 19, 2011
Things appear to be coming to a head in Greece. It was a little surprising that markets took heart from Thursday's conference call between Sarkozy, Merkel and Papandreou which merely outlined the desire to deal with the crisis without willing the means. (The dollar swap plan unveiled on Friday was a more plausible reason for a rally since it tackled an underlying problem, that European banks have been losing their access to finance from US money market funds.)
But as Europe pushes forward with its plan A (tiding over the Greeks with short-term loans on condition of severe austerity measures), it is clear that tempers are fraying. Take the statement from Evangelos Venizelos that
If we want to stabilise the situation, if we want to avert default, if we want to remain in the core of the eurozone, if we want the country to stop being blackmailed and humiliated - because no citizen should have to put up with humiliation of their country - we have to make three large strategic decisions as part of our national strategy.
The words "blackmailed and humiliated" are fairly strong meat and may well be intended for domestic political opinion. They do not indicate that Greece is giving up since Venizelos was also reported as saying that
Comments or analyses of an imminent halt in payments or bankruptcy are both irresponsible and ridiculous
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