I’m a lot further from the action than DD, but I’m still surprised his confidence in the judgement and resolve of the Eurocracy in the coming confrontation with Syriza. Whatever you think about Greece, the failure of austerity in the Eurozone generally is patently obvious. It has already been admitted by the IMF (at least in its research, if not by its political leadership) and just last week by the ECB, with the shift to massive quantitative easing and the abandonment of the (supposedly unbreachable) ban on financing government deficits. That leaves the European Commission as the only horse still pulling the troika hard in the direction of austerity.
But the European Commission is almost as discredited as austerity. Apart from the appalling Olli Rehn, there’s the problem of Jean-Claude Juncker, who faced unprecedented resistance before getting elected, only to be exposed as complicit in tax avoidance/evasion on a scale that makes the dodges of Greek doctors look trivial. I just can’t see the IMF and ECB risking utter disaster in support of a policy they no longer believe in, at the behest of a shambles like the Commission.
That leaves the possibility that the German government will exert its (assumed) veto power more directly [I don’t understand the nature of this power, and would be happy to be enlightened]. My guess is that Merkel won’t be willing to take the risk of lumbering Germany with the responsibility of destroying Europe (again).