Three months into the new Radical Left Coalition (SYRIZA) led government in Greece and Greece appears to be on the same track as it had been with the previous government with the same policies of austerity, privatization and battered state as it tries to reach an agreement with its creditors. The government is optimistic that a deal will be struck soon and is 85-90% possible. The same sources point to a “last-minute conflict” with the situation, at the eleventh hour, with the situation looking worse than ever.

The government blames creditors for the deadlock. On their part, creditors continue to push for the government to fully conform to the “Hardouvelis e-mail“. The climate is made even worse with dissent within the leftist government with a large part of the party stating that they will refuse to vote for a “new memorandum”. For this reason, a possible referendum has entered the table.

SYRIZA’s announcement on Tuesday:

We want people to participate in developments, to battle and call for their rights. We want the nation to participate in all that concerns it, and the future of the place will be judged according to its own decisions. SYRIZA has extended an invitation for the joint struggle of all progressive societies and political forces of Europe that are battling against the neoliberal austerity strategy.  Against threats and pressure we suggest solidarity and democracy.

In this climate the government awaits new reactions from creditors if there is a loosening of the ECB’s stand on the matter of liquidity. Sources within Megaron Maximos (govt leadership) state that if there are no clear moves on their part the country will not hesitate to move towards a credit crunch by not paying its IMF installment in mid-May as the money currently available is enough only for wages and pensions.