Things are looking better for Greece as the latest report is Greek coalition talks break down in acrimony.

Greece appeared to be heading for fresh national elections after last-ditch coalition talks chaired by the country’s president ended in mutual mud-slinging by the conservative, socialist and leftwing leaders.

Antonis Samaras, leader of the centre-right New Democracy party, said the radical left coalition Syriza had blocked efforts to break the deadlock, even after a letter from premier Lucas Papademos was circulated at the meeting outlining Greece’s deteriorating fiscal position.

Tax collection slowed markedly during the election campaign, putting budget deficit targets at risk, according to a finance ministry official. Prolonged political instability would also delay the implantation of a €40bn recapitalisation scheme for Greek banks included in the country’s second bailout by international lenders, the official said.

Mr Samaras criticised Syriza’s 37-year-old leader for refusing to help form a coalition or support a government that would try to re-negotiate the terms of the bailout. “I don’t know where (Alexis) Tsipras is heading,” Mr Samaras said at the end of a 90-minute meeting described as “highly charged” by presidential aides.

Evangelos Venizelos, leader of the PanHellenic Socialist Movement (Pasok), accused the Syriza leader of “showing arrogance” by opposing a coalition deal.

Again and Again Samaras Proves He’s a Liar

Samaras’ idea that terms of the bailout can be renegotiated is a complete farce and he knows it. He is simply looking for any way to get into power.

Moreover, falling tax receipts means only one thing: harsher austerity terms and more demand from Germany not less. If there was any change of heart from Germany, it would be up to Germany to lead the way, not Greece. Samaras knows this as well.

I suppose one can accuse Syriza party leader Alexis Tsipras of lies as well, given he is running on a platform of staying in the Euro as well as defaulting on debts. However, anyone with an IQ above the level of a rock knows that is impossible.

Let’s hope for another election on June 10th or 17th, one with a clear mandate to tell the Troika to go to hell. Such an outcome is in the clear best interest of all of Europe.

Mike “Mish” Shedlock
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