Greece called into question on Saturday a major debt repayment it must make to the European Central Bank this summer, after acknowledging it faces problems in meeting its obligations to international creditors.
There is more here, most of all showing the Greeks have not obtained much leverage from the talks. They are in a deep liquidity squeeze, even post “agreement.” The Bundestag overwhelmingly approved last week’s “deal,” whereas the Greeks don’t even want to vote on it. So who won that round? The on-paper ability to be flexible with a primary surplus — that isn’t real any more — just isn’t worth very much right now.