"The intractable problem is that many governments do not trust the Greek government to implement a €12bn (£8.6bn) programme of spending cuts and reforms that will be delivered as part of a bailout. Eurozone governments are seeking proof from Athens it can keep its promises, in exchange for agreeing to start talks on a deal. “The main obstacle to an agreement is trust,” said Pier Carlo Padoan, finance minister of Italy, one of the countries most sympathetic to Greece." [The Guardian]
Europhiles are between a rock of adamant and a very hard place. If Greece agrees to the conditions being imposed to keep it in the Eurozone to secure the third grand bailout, only two outcomes are possible. Either Greece will comply and keep the conditions, or it will not. If it keeps the conditions, it will face decades of deflation--which is to say that the population will eventually rebel and a revolution will drive Greece out of the Euro, into the arms of whoever else. Or, it will fail to keep the conditions, proving that the distrust of Greece is well founded--which is to say that more bailouts will be needed. Fool me once, shame on you. Fool me twice, shame on me. Fool me three times and I am the fool. Europe is well on the way to being branded as the village idiot.

