– Germany Gives Greece Just Enough Rope: Varoufakis Says If Troika Rejects Reforms “The Deal Is Dead And Buried” (ZeroHedge, Feb 20, 2015):
As usual, the fine print of any European “deal” is revealed not only after the agreement, but after the US market close. So for all those waiting for the real punchline, here it is – it also is the reason why Greece got until Monday to reveal the list of “reforms” it would undertake:
“We’re in trouble next week if creditors don’t accept Greece’s reforms“, Greek Finance Minister Yanis Varoufakis says. “If our list of reforms is not backed by the institutions, this agreement is dead and buried.”
That’s bad. But… “But it’s not going to be knocked down by the institutions.”
For his sake, let’s hopes he is correct in predicting what the Troika, pardon, Institutions will do. Because this is precisely what Schauble meant when he said that the “Greeks Certainly Will Have A Difficult Time To Explain The Deal To Their Voters“: under the conditionality of the Troika’s approval, the Tsipras government now has to walk back essentially all the promises it made to the Greek people – promises which by some accounts amount to over €20 billion in additional spending – or the Troika, pardon Institutions, will yank the entire deal and the Grexit can then commence.
And that’s the bottom line.
It’s also the reason Schauble was gloating: because he gave the Greek government just enough rope with which to hang itself.
Then again, if and when the Tsirpas government is booted out next once the Greek euphoria turns to disgust and disillusionment, does Germany really want to negotiate with Golden Dawn instead?