What Germany just did to Greece’s new ruling coalition:
Germany has rejected a Greek request for a six-month extension to its eurozone loan programme.
The rejection came despite the European Commission calling the Greek request “positive” only minutes earlier.
Greece had sought a new six-month assistance package, rather than a renewal of the existing deal that comes with tough austerity conditions.
However, a German finance ministry spokesman said the new plea was “not a substantial proposal for a solution”.
Later on Thursday, Greek prime minister Alexis Tsipras and German chancellor Angela Merkel spoke by telephone, according to the Reuters news agency.
One Greek government official described the 50-minute call as “constructive”, adding: “The conversation was held in a positive climate, geared towards finding a mutually beneficial solution for Greece and the eurozone.”
Meanwhile, Italian prime minister Matteo Renzi spoke to Mr Tsipras and European Commission President Jean-Claude Juncker in a further effort to strike a deal, an Italian government source said, according to Reuters.
Greece formally requested a six-month extension to its eurozone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks, but the German finance ministry abruptly dismissed the proposal.
The BBC’s Mark Lowen in Athens says Germany’s rejection of the Greek proposal suggested “a rift between Brussels and Berlin at the very highest level”.
“It’s not yet clear which side will prevail, and which side will give ground, but clearly the hopes that Greece was moving towards a deal… have been thrown into doubt once again.”
Sounds like a pitchfork moment to me. May I remind you of how the Greeks have dealt with previous austerity?








