Real-Time Game Theory: Fears of Greece Eurozone Exit Mount as EU Deadline Looms
By The Guardian, June 13, 2015
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Greek finance minister says he does not believe Europe would let his country leave the eurozone, but decision on its fate is expected by Thursday
It appeared that Greece was still refusing to back down. In a policy document leaked to the Greek press, the Tsipras government once again called for a debt restructuring and ruled out pension cuts or labour market reforms that would include wage decreases.
It attacked the IMF’s decision to walk out of negotiations on Thursday, arguing that it represented pressure not on Greece, but on Germany. The IMF said the gap between the two sides was too wide and there had been no progress in talks.
The negotiations have gone from bad to worse in the past 10 days and have now reached stalemate. Tsipras refuses to table proposals that would satisfy Greece’s creditors by agreeing to pension cuts and tax increases, and is insisting on a form of debt writedown – which is anathema to the Germans.
The eurozone, in turn, has reverted to the pre-Tsipras practices of the past five years of serving up ultimatums and policy diktats to the Greeks.
