Greece’s decision to delay a 300-million-euro payment to the IMF today and instead try to meet all June’s payments at the end of the month was probably an act of bravado for domestic consumption but it also clarifies things.
Last night, Greek Prime Minister Alexis Tsipras left talks with senior EU officials in Brussels saying a deal with creditors was “within sight” and that Athens would make a payment due to the IMF on Friday.
It’s still not clear if a Greek deal will be done but the pace of activity has certainly picked up.
Five people who hold Greece’s fate in their hands – Angela Merkel, Francois Hollande, Mario Draghi, Jean-Claude Juncker and Christine Lagarde – met for talks in Berlin last night.
We went into the weekend pondering the Greek government’s expectation that a cash-for-reforms deal would be agreed on Sunday, and we come out the other side with no breakthrough … again.
The Greek government said a deal with its lenders had reached the drafting stage and would not require wages and pensions cuts or reforms to the VAT regime. It didn’t take long for euro zone officials to retort that this simply was not the case and that the two sides remained far apart.
G7 finance ministers and central bankers are meeting in Dresden.
After many mixed messages in recent months, the Greek government seems to have alighted on one simple line: can’t pay, won’t pay.
LONDON, May 25 A crushing election defeat for
Britain's Labour party has laid bare the dilemma facing Europe's
The smart money has always been on a last-minute deal being done to keep Greece afloat with Athens making most of the concessions and the euro zone and IMF bending only a little. But the chances of a car crash are growing as each day passes.