There is indeed a general agreement amongst the Eurozone governments that they are prepared to sit down and listen to the new Greek government’s demands. At one end one could have on the table new demands for yet further lowering of interest rates or even a further prolongation of the debt maturity period. There is at the other end a red line which nobody wants even to consider. This involves hair-cuts on current outstanding sovereign debt.

In between there are so many upcoming demands which will try to derail the EU/ECB/IMF system itself. The Greek government knows that debtors are no choosers. They are caught in a vortex of a lose-lose situation.

Breaking through would be a formidable task. The main reason why they will get little sympathy is that they need to get approval from fellow indebted countries whose peoples are in no mood to grant significant concessions which down at heart they would like to get for themselves.

– Thursday, 29th January, 2015