The Greek government has submitted its own austerity plan and I don’t think the Germans will like it much.
The reason is — as a collegue pointed out — is that the Greeks are raising all of its tourist taxes, which will hit Germans on holiday.
Very smart of them to limit the impact on Greeks and hit their oppressors with big VAT levies.
That said, I believe the Greek Parliament will more than likely vote down the proposal later Friday. No reason to hammer out a deal now, when Sunday is the deadline.
This will buy time for pullback of measures affecting the Greek pensions and farm subsidies, which are in the proposal.
If there is one thing the Greeks know, the Trioka will not declare a default and will work with them to get a resolution to remain in the euro.
Saying the “D” word triggers all sorts of contagion fears throughout Europe.