According to Yves Smith at Naked Capitalism, Prime Minister Alexis Tsipras has surrendered to the Troika by “offering to implement more stringent austerity terms than those rejected by voters last weekend by a resounding margin in the Greek referendum.” Apparently he was hoping the Referendum would produce a “Yes” vote that would permit him to save face by claiming that he did the best he could but had no choice except to concede defeat and call for a new election. He never wanted a Grexit and isn’t willing to lead the country in that direction.
The problem is it may be too late to avoid a Grexit. The banks are running out of cash, small businesses are collapsing and the people are hurting, especially pensioners and people who need life saving medication like insulin.
The Greek proposal is being presented to the Parliament this afternoon. It will probably pass, although Tsipras’s party, Syriza, is splintered. Even if the MPs approve it, the Troika may reject it as might the member nations.
Tsipras outsmarted himself and created a helluva mess. He’s probably going to be hiding out in Honduras desperately needing lawyers, guns and money.