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This is what Juncker said when cancelling the meeting yesterday :

FT Alphaville » The Juncker statement

I welcome recent further progress made regarding the second adjustment programme for Greece. In particular, I welcome the agreement reached between the troika and the Greek government on the programme as well as the positive vote ofthe Greek Parliament last Sunday. At the same time, following today's Eurogroup Working Group meeting, it has appeared that further technical work between Greece and the troika is needed in a number of areas, including the closure of the fiscal gap of € 325 million euro in 2012 and the debt sustainability analysis. Furthermore, I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the programme. Against this background, I have decided to convene ministers to a conference call tomorrow in order to discuss the outstanding issues and prepare the ordinary meeting of the Eurogroup on Monday, 20th February 2012.

So, if you do a new iteration of the debt sustainability analysis using recent measures of the implosion of the Greek economy (as opposed to the fantasy-land Troika projections where savage cuts in wages and government spending provoke an economic stimulus), the obvious conclusion is "you can't get there from here".

i.e. all the sacrifices are in vain, because nobody can pretend that the residual debt burden after writedowns is sustainable with a shrunken economy.

There is no way the deal is going through.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Wed Feb 15th, 2012 at 06:27:02 AM EST

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