G-Pap, in an interview with Greek TV has just gone all in on his bluff, and has said that "no EU state will block Greece's
potential tapping an EU/IMF aid deal if the European Commission
and European Central Bank issue a positive recommendation that
it should be used." This leads us to believe that European opposition is mounting and that G-Pap is merely trying to preempt the vote down on Greek aid now that it has been revealed that several countries will need to hold "referendums" on whether this aid is in fact permitted (here's looking at Italy and Germany). What is more critical is that the PM has said "that Athens would never
announce a "red line" at which it would decide to invoke the
mechanism." That's perfectly understandable as not only is Greece way beyond the red line as is, but in the game of sovereign chicken, it will be the bond vigilantes who will always have the upper hand in calling Greece's bluff. And with statements like these we wouldn't be at all surprised to see another blow out in GGB spreads tomorrow, to continue the widening we started to see late in the day today.