The gap is perhaps not as wide as the press is making out -this is posturing. The problem is negotiating hands are tired. One lesson its hard to cut a deal with transliteration problems with 24 official languages (even if French and English are the working ones decisions get taken in Greek, German, Spanish etc.). Another is never conduct negotiations with word when there can be multiple track changes of multiple versions – use a moden cloud based document management system.
The text in question from Paul Mason track changed by Zero Hedge
Certainly the last minute German additions were provocative (unilateral actions, privitisation etc.)
But consider this statement from interlocutor Sapin of France to Rueters.
It is a problem of wording, although the legal tool cannot be anything else than an extension of the programme. What (Greek finance Minister Yanis) Varoufakis has told us, what I have understood, is that he agrees in principle with the extension of the programme,” Sapin told reporters.
He said that Greece could keep a primary budget surplus at 1.5 percent of Gross Domestic Product, but not lower, for as long as the programme extension lasted. “Everyone agrees on this: you have a 1.5 percent primary surplus, you cannot do anything in this period that worsens that surplus,” he said.
It has to be an extension during the bridging period as a new deal requires approval by each Eurogroup parliament, no way. What matters is how the existing agreement is recast. The existing agreement wont be enforced anyway in terms of austerity, with 1.5% PSmost of the 30 ‘troika’ commitments would be unenforcable. Yanis however cannot agree to wording ‘extension’ as this would lead to collpase of teh Syrizia – maionly nut not wholly from its hard left faction.
No way will and can Greece be thrown out of the Euro and liquidity withdrawn, as Neil Smith explains, not least because the IMF wants its money back and not in devalued drachmas, it doesn’t want another Argentina on its hands. So it really comes down to one consensu buuilding wording change which means unverändert in German and εντελώς νέα in Greek.
Some synonyms for recast – id go for recalibrate – its most true – they are adjusting the term and the PS target – its a recalibration. Happy with that Mr Schaeuble, Mr Lafazanis? You can even let Mr Schaeuble quote Kant
“… nothing supposed capable of being thought may contain contradictory characteristics.”Verb change