No Deal: Greek Moderate Left Party says "No Government Possible"; Chart Explains Why Deal Is Now Impossible

The talks still continue but good news is on the horizon as yet another political party, the Democratic Left, has backed out of the Unity coalition.

Please consider Greece's moderate left says no government possible

The moderate Democratic Left party in Greece says it will not join pro-bailout parties in a coalition without the more radical far-left Syriza.

Syriza is refusing to attend coalition talks because it will not back any government which supports austerity measures demanded by the EU and IMF.

The Greek president has summoned the four main parties for last-ditch talks in an effort to avoid new elections.

"No unity government can emerge," Fotis Kouvelis, head of the Democratic Left party, told Greek television.

"A government without Syriza would not have the necessary popular and parliamentary backing."

Chart Explains Why Deal Is Now Impossible

Here is a nice chart from the article that highlights the situation. Annotations in purple by Me.



The Independent Greeks are willing to form a coalition, however please note 7 Conditions For Coalition Government

The head of Greece's nationalist Independent Greeks party Sunday set seven conditions--including annulment of the country's loan deal--for his party's participation in a coalition government, even as Greece scrambles to resolve a weeklong political deadlock following inconclusive polls last week.

Speaking less than an hour after a meeting with Greece's president, Panos Kammenos said any coalition partners would also have to agree to immediately expand the country's exclusive economic zone, set up a special committee to re-examine the size of Greece's official debt--which Kammenos disputes--and press the case of German war reparations from the World War II, among other things.

"The president of the republic said he would share our proposals with the heads of the other parties," Kammenos said. "If these seven proposals are accepted, at that point we will see if a coalition government is possible with the other parties."

Kammenos, who polled fourth in last Sunday's elections and won 10.6% of the vote, reaffirmed his opposition to the loan memorandum and the austerity measures associated with it.

Two Votes Short

Those conditions leave the Unity coalition two vote short of a majority. Unless a couple of elected representatives switch parties, a new vote will take place. It is highly likely Syriza will get enough votes from the left to form a government.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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