Assorted Greek links (Greece lost)
1. The new Greek deal and trust. Die Welt (in German) says that Greece has four months to get its act in order, otherwise prepare for an orderly exit. Here is the comment of the Greek government issued at the end of the Eurogroup meeting, worth a read. Here is a Rubens painting of Achilles.
2. Numerous sources suggest that without a deal, Greek banks would have been broke on Tuesday (Monday is a holiday there). Given game theory, does this raise or lower your opinion of the quality of the deal that was cut?
3. Peter Spiegel notes on Twitter: “Morning after: still not sure why @syriza_gr picked this fight. Got v little, & spent lots of political capital they need for 3rd progm negs”
4. The struggle resumes on Monday, with further negotiations required to define the actual substance of the policy reform part of the agreement.
5. It seems to me that if you put aside the talk, and the creative ambiguity on the primary surplus numbers, that overall Greece is on a shorter leash than before. The Germans have shown credibly that they are willing to live with Grexit, Syriza showed it doesn’t have a Plan B, doesn’t have so much support within the eurozone, and it is revealed that Greek deposit flight is on a trigger-sensitive path at any moment.