This an outstanding article and video interview, published in the Australian. Check it out!
The headline is stark but realistic. Either Greece allows receivership, effectively foreign control or it’s liquidation.
Germany is now playing hard-ball and humiliating Greece, which they hope will be a powerful signal for other Southern European countries to stay in line. France meanwhile has been playing a strong-hand supporting Greece.
The context is that Germany’s domestic politics is weary with Greece. Angela Merke, Germany’s Chancellor, has been papering over the cracks in the Eurozone for years. She prefers incremental rather than strategic decisions. But she faces two political crises. Firstly, there’s domestic opinion in Germany. Secondly, there’s the US, France and Italy that are worried by the geo-strategic implications of a Grexit – Putin is ready to give Greece help with energy.
Perhaps, the greatest crisis is that the hard-left government in Greece has not been honest with the Greek people – it has been arrogant and mislead the Greek people about the strength of their negotiating hand. This could well lead to an early change of government. Once the ECB turns off the emergency liquidity tap to Greek banks, rapid implosion is expected to follow.