12 Feb 2015
Will the Greek discussions be a compromise or a capitulation? – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team comment that with Greece backing off some form its initial demands and Europe failing to do so yet, will this Greece–eurogroup discussion end at a compromise or a capitulation?
Key Quotes
“Greece and European officials think they are both in a strengthened negotiating position. Greece's primary budget surplus, the electoral victory, and the principle that monetary union is irreversible emboldens the new government. European officials recognize that the monetary union is better prepared to deal with a Greek exit.”
“There are backup facilities that did not exist in 2010, and the financial system is widely perceived as stronger. This has encouraged both sides to adopt brinkmanship tactics. That means that negotiations have to be extended to the last minute, or nearly so.“
“Some observers insist on framing the issue in terms of blinking or compromising. Greece has already backed down from its initial demands. Europe has yet to do so. A compromise means both sides have to move. Otherwise it is not a compromise, but a capitulation.”
Key Quotes
“Greece and European officials think they are both in a strengthened negotiating position. Greece's primary budget surplus, the electoral victory, and the principle that monetary union is irreversible emboldens the new government. European officials recognize that the monetary union is better prepared to deal with a Greek exit.”
“There are backup facilities that did not exist in 2010, and the financial system is widely perceived as stronger. This has encouraged both sides to adopt brinkmanship tactics. That means that negotiations have to be extended to the last minute, or nearly so.“
“Some observers insist on framing the issue in terms of blinking or compromising. Greece has already backed down from its initial demands. Europe has yet to do so. A compromise means both sides have to move. Otherwise it is not a compromise, but a capitulation.”