Wow. I have to admit, I'm stunned, as it now looks like Greek Prime Minister Alexis Tsipras was bluffing after all:
Greek Prime Minister Alexis Tsipras raced on Thursday to finalize a tough package with tax hikes and pension reforms due within hours if Athens is to win a new aid lifeline from creditors and avoid crashing out of the euro.
Tsipras was huddled with advisers, pulling together a package of reforms that is expected to include much tougher measures than those included in a previous plan from creditors that was rejected by Greeks in a referendum on Sunday.
But having won wide public support at the referendum and the subsequent backing of opposition parties, an emboldened Tsipras is expected to have an easier time facing down any resistance at home, allowing him to focus to appeasing creditors, Reuters reported.
And why would anybody expect that? Pre-referendum polls that were showing Greek voters heavily in favor of knuckling under to the country's German creditors were wildly wrong, as they voted overwhelmingly to flip off the rest of Europe and demand that the welfare gravy train keep right on rolling, uninterrupted. Tsipras and his Syriza (communist) party led that charge, shamelessly demagogueing the Germans and the very idea of fiscal responsibility and Greeks having to live within their means. Now the Greek Prime Minister is going to pirouette and submit what amounts to an almost complete capitulation to those same voters instead? He'll be lucky if they don't lynch him. They haven't felt nearly enough economic pain to break them to the depths necessary for them to accept such an ultimatum.
Indeed, he may face a revolt from his own Syriza-oids:
The offer must go far enough to satisfy skeptical creditors but may face resistance from the hard-left wing of Tsipras' Syriza party and from his junior coalition partner, the Independent Greeks, after the government campaigned and won a resounding 'No' to more austerity in a referendum on July 5th.
In a sign of the some of the upcoming challenges Tsipras will face, the leader of the far-left flank of his Syriza party came out to denounce any imposition of harsh measures on Greeks.
"We don't want add to the past two failed bailouts a third bailout of tough austerity which will not give any prospects for the country," Energy Minister Panagiotis Lafazanis told reporters. "Greece is not facing execution, it is not ready to accept any fait accompli."
It's like Prime Minister Tsipras suddenly awakened from a crazy dream, remembered what his role and job really is, and is belatedly trying to be a responsible adult when he remains the leader of a nation of whiny, petulant brat children. And after having led on Greek voters for six months, this is a betrayal that they will not forgive. I'd be surprised if Tsipras's premiership lasts to the end of the month.
Exit thought: Now that the E.U. has brought the Greek leader, if not Greek government, to heel, might this not be an opportune time to keep them cut off from any more bailouts and force them to put their fiscal house in order with no more delays or half-measures? "Quit debt cold turkey," in other words? They'll never do it, but they'll never get a better opportunity, either.
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