Negotiations over Greece’s demand for a significant restructuring of its debt mountain are entering a truly perilous phase.
The Greek government delayed the conclusion of the bailout review and getting down to brass tacks for reasons that can only be explained as political, and only because of issues within the ruling party. As a result, it found itself having this crucial discussion with its European counterparts right in the middle of German pre-election fever.
Meanwhile German Finance Minister Wolfgang Schaeuble is holding on fast to his end of the rope in the tug of war over Greece, and this alone is a danger.
Averting a new Greek crisis that could send the economy back into a nosedive at this point is something that requires serious deft and tactful handling. The last thing we need is unnecessary machismo that will simply raise the stakes even higher.
A golden mean must be found so that Greece’s interests are protected and a disastrous crisis is averted.