Photo: Wikimedia Commons
Ahead of the next Greek election, it seems pretty clear that ‘core’ Europe has one message for Greece.This is from the latest note from Jefferies’ David Zervos:
And that takes us squarely to Mr Tsipras, SYRIZA, the MoU/MoB and the Greek election. It will be very easy for Merkel and company up north to lay out a case for an ELA shut down for the BoG if the MoU is discarded by the Greek voters via a win for Tsipras! In a sense, Merkel’s phone call on Friday to the Greek president was just that. It was actually the same call that was made to the Irish president a while back – and of course the Irish balked, caving to the German demands. At that time however there wasn’t an Irish presidential vote. This time, with Greece, Merkel’s message is really to the Greek people. And what is that message exactly? Vote for Tsipras and I turn off the Euros.
(Find more Zervos at Markit Hub)
Meanwhile, just today from the French Foreign Minister.
This is all a game of chicken. There’s no gaurantee that they’d do anything if Tsipras were elected, but they have to imply!