The latest Greek deal is unraveling in multiple places already. The EMU wants to hold it together but can't. Cracks are wide, deep, and widening.
Greek Party Leader Might Seek to Renegotiate Terms
Social unrest harms hopes of Greek reform
Under the category of good news from Greece, The Financial Times reports Greek Unity Talks Hit Impasse.
Talks between Greece’s president and the leaders of the country’s three largest political parties on forming a coalition government reached an impasse on Sunday, increasing the chances that the country will hold fresh national elections in June.
By George Liu:The past few days have been pretty eventful for Greece's nascent coalition government which, now established, is seeking space to maneuver in following the bailout terms established by the troika (made up of the European Commission, European Central Bank, and IMF). A few days ago, Greece announced the extent to which it desired to renegotiate the terms of the second bailout from the troika
The Greek support package has not yet failed. But you can hardly call it a success. Investors have little more confidence in Greek debt than they had last week.
And - it seems - little confidence in the eurozone either. The euro today sank to a one year low, and markets shuddered across Europe.
Why? Apparently, even bond market vigilantes think you can ask a government to do too much.
The EU bailout of Cyprus banks negotiated this weekend, which contains a controversial haircut on depositors, has just been pushed back again. Originally, it was scheduled for today, but this morning, it was postponed until tomorrow. Now, Peter Spiegel at the FT reports that tomorrow's vote has been cancelled as well.