Is a deal finally on the horizon in Greece? On Monday, the Greek newspaper To Vima leaked the details of an alleged package put together by the EU Commission President Jean Claude Juncker. It would release €3.7 billion to Greece in exchange for some less comprehensive reforms, allowing the country to meet its immediate obligations. A full deal would then be put off until the fall.
Juncker subsequently denied that this plan existed, but something is definitely in the air. Greek leaders appear more confident than ever that a deal could be reached—in the “coming days” or within “about a week” , depending on whom you talk to. Syriza’s hard left flank is publicly making noises about opposing any kind of compromise with creditors, just as German Chancellor Angela Merkel works hard to build consensus in her country over a deal. One source even claims that the EU might continue to give Greece aid should the country miss its June payment to the IMF.
Where there’s this much smoke, there’s probably a fire, even if we don’t know what shape the deal will take yet. That will please the Greek people, 61 percent of whom now believe that their government “should water down its pre-election pledges.”