The Radical Left Coalition (SYRIZA) government’s belief that negotiations with international creditors were on the right track was shattered over the Greek Orthodox Easter with a barrage of statements by European officials and the return of scenarios concerning Greek bankruptcy or a Grexit. Technical groups in Athens are placing a great deal on pressure for the government to return to old memorandum policies and are setting guidelines for Greece to follow.

The government is trying to decode the turn in negotiations that it attributes to negotiation strategies and not a real intent to “sink the country”. Government sources state that communication tactics are being used to force the government to accept recession measures such as wage and pension cuts, group dismissals etc.

The current situation makes it difficult for real progress until June as Greece may have a problem in responding to its basic obligations.

Despite pressure, the government has made it clear that it won’t step over “red lines” set in the pre-election campaign that led to its victory in the snap elections of January 25. There is speculation as to whether there will be a referendum or new elections as the program being offered by international creditors is far removed from the program on which SYRIZA’s victory in the elections was based.

A relevant non-paper on the Greek economy notes that “ultra-conservative circles in Greece and abroad refuse to accept reality. The memorandum has died and austerity policies will not return to Greece. These policies were applied, failed and led the country to the tragic situation that the majority of the Greek nation is in.”