On Mar 7, 2015, at 7:08 AM, Hinrich Kuhls <[email protected]> wrote:

> As far as ECB's "rope on the neck" and further thumbscrews of other financial 
> actors (by the way, both ECB and EU are not "external" actors to Greece) are 
> concerned I think the outcome is not as straightforward as you assume: Next 
> round of negotiations next Monday.

My thought also. In any negotiation, the parties can never be certain of the 
outcome (unlike many interested onlookers from outside who often project that 
impression). If there is to be a compromise, it will reveal itself only in the 
course of negotiations. I doubt if the either the Greek or German-led eurozone 
negotiators can say with any real assurance at this stage whether the talks 
will break down or succeed. My guess is that some form of debt relief will be 
offered to Greece and the peripheral states because economic recovery and 
political stability demand it, although how much relief and how it will be 
structured will be decided through negotiation, and reflect the respective 
bargaining power of parties involved. 

In Greece’s case, it’s often overlooked that any relief can occur equally 
outside of the eurozone as within it, provided a Grexit is a negotiated and 
orderly one which cushions the transition to the new arrangements. We know a 
Grexit has been carefully weighed in Athens, Berlin, Brussels, Frankfurt, and 
Washington, and it could move to the forefront of negotiations if the obstacles 
to a compromise within the eurozone prove to be insurmountable. Or one or the 
other or both sides could miscalculate, collapsing negotiations and triggering 
dire unintended consequences. All of which is to say that I expect that the 
range of possibilities is presently far wider than the impression often 
communicated in the mainstream and social media, which take the unyielding 
public statements of the negotiators on both sides for good coin.
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