Although mainstream news sources are reporting only positive stuff about the latest chapter in the saga of the Eurozone collapse, if you read Boggart Blog you will have learned yesterday that the latest ‘austerity’ proposals offered by the Greek government are about as substantial as a set of hen’s teeth or a bucket of rocking horse shit.
Today the media spin is even worse, we are on the verge of a ground breaking deal that will keep Greece in the Euro and hold the EU together all the TV channels and newspapers tell us. In reality, having failed to offer any realistic proposals, Alexis Tsiparis now has as many problems at home in Greece as he has in Brussels.
Late on Monday evening European news channels were leading on a Greece Capitulates: Tsipras Will Accept Bailout Extension, headline, offering the narrative that Greece’s non-cuts would enable a new bailout to go ahead. Not only was this not true, while the French, fearing that they are next maybe, are keen to grab anything Germany’s ruling coalition parties are in open revolt against Hausfrau Merkel’s efforts to dum another pile of Greek debt on the shoulders of German taxpayers.
On top of that Alexis Tsipras now faces a political battle at home in the wake of his move to make a deal with creditors that includes higher taxes and restrictions on early retirements.
The agreement, which accepts the necessity of extending the countrys second bailout in order to bridge the gap between payments due to creditors over the coming weeks and final discussions around a third program, has not been received well by Syriza party members.
In fact no agreement will satisfy the more radical wing of the party, many of whom believe the best option for Greece is to default and return to the drachma these lawmakers contend redenomination would not be as economically catastrophic as the EU would have them believe. If Tsipras cannot rally enough support for the new proposal, we could be looking at a new Greek government as well as a new currency before long.