Why did Varoufakis go? The official reason, on his blog, was pressure from creditors. But there are a whole host of other reasons that made it easier for him to decide to yield to it.
The IMF’s report yesterday got swamped amid the gloom, despondency and fractiousness of the Greek crisis. It said, in short, Greece’s debt has become unsustainable.
Alexis Tsipras is getting ready to stage a climbdown and he will tell the people of Greece he’s about to accept something very very similar to the conditional bailout he rejected.
Last night’s ‘Yes’ campaign demo was big – I would say maybe a quarter bigger than the ‘No’ demo of Monday, and with a much more angry atmosphere.
While the far left government will pose the referendum as a vote for or against austerity, the right will say it’s an in-out vote for the single currency and the EU itself.
If today’s Brussels talks fail, the Greek debt crisis could stop being a story about economics and become one of civil society, politics and the rule of law.
With negotiations between Greece and its lenders stalled, but the differences amounting to around 0.6 per cent of Greek GDP, the stage is set for either a last-minute deal or a breakdown.