Forget Pyrrhic victories, the more Greek tongues that wag, the clearer it becomes that no one appears to have a clue what is going on. The contradictory tone from various Syriza members has allowed the opposition to sit quietly by (with the odd jab from Samaras) and watch the collapse unfold. The more threats and promises Tsipras makes, the more cornered he becomes as cash outflows accelerate and cash demands loom. It appears all over bar the printing as both sides are now just posturing for who bears the blame for the ultimat exit, as one wit noted, "once you remove walking away from a deal as an option, you are no longer negotiating."
As The Guardian reports, Greek PM Tsipras made a lot more promises...
A defiant Alexis Tsipras has vowed to win an honourable compromise from Greece’s lenders, after negotiations over economic reforms dragged on without a deal.
Greece’s PM told parliament tonight that: “It is true that we are seeking an honest compromise with our lenders but don’t expect an unconditional agreement from us,”
Tsipras vowed to stop ‘the bleeding’ in Greece, and repeatedly argued that the country needs a new debt restructuring deal. Greece has a simple choice, he argued, between surrendering, or changing the policies that have caused such economic misery.
He pledged to end the ‘pillaging’ of the middle classes, and revealed that a new clampdown on unpaid taxes had already delivered 100 million euros.
Tsipras also ruled out raising sales taxes on food and medicine, or shaking up the labour market, as these “red line” measures could plunge Greece back into recession.
But all around him are contradictions (and we are talking some exemplary contradictions in the last few days...)
"The only way for Greece to end its crisis is through confrontation, if not conflict, with a Germanized Europe," - Greek Energy Minister
"We seek an honest compromise with our partners" - Greek PM Tsipras
"Privatizations won't happen" - Greek Energy Minister
"the sale of Piraeus Port will be completed soon" - Greek Deputy PM
"Greece won’t abandon its anti-austerity philosophy in return for aid " - Greek International Affairs minister
"Tsipras imagined he'd get money without terms but ended up getting terms without money" - Ex-PM Samaras
Meanwhile, markets are not buying it and Greek risk is surging once again...
Finally, as The Guardian concludes, Greece and its creditors need to meet halfway to avoid the crisis...
If Greece dropped out of the eurozone, in an accidental “Grexit”, the consequences would be far-reaching. Not only would it damage the EU’s monetary union, the EU itself would be weakened geopolitically. Mr Tsipras must show he has the credentials to be a realistic partner.
But, equally, Greece’s lenders must walk a fine line to prevent a breakup of the European project. Just as importantly for the EU’s democratic credibility, there must be room for negotiation. In Greece as in any country, it is never a good thing when voters’ choices end up being ignored.
The question now is - what will happen to Italian and Spanish sovereign spreads?
Despite all the Draghi-juice, spreads are already widening notably - this may just be a glimpse of what's next for Europe in which everyone has been ploughing their excess cash..