The final phrase in the troika’s recent announcement, saying that “financing issues will be discussed between the official lenders and Greece,” is the key to how things will progress from here on. Maybe it refers to how the next tranche of bailout funding, worth 31 billion euros, will be disbursed. More likely, however, is that it reflects the difference of opinion between the International Monetary Fund and the European Commission and European Central Bank regarding ways to close the fiscal gap and the possibility of Greece being granted an extension for its adjustment program, as IMF chief Christine Lagarde had championed in statements made a few days ago.

It is clear that how the creditors will proceed with Greece will require a political solution and it would be a terrible shame if Greece were left hanging, especially given the recognition of the efforts it has already made as well as of the need to quell the risk of further waves in the markets and instability in the euro region.