“The continuation of the waiver is based on the technical extension of the European Financial Stability Facility programme until the end of February 2015 and the existence of an International Monetary Fund programme. It is also based on the assumption of a successful conclusion of the current review and an agreement on a follow-up arrangement between the Greek authorities and the European Commission, in liaison with the ECB, and the IMF”.
I cannot interpret this statement by the ECB in any other way than an ultimatum. When the European Central Bank officially goes on record for saying this, there is no imaginable way that they can backtrack from it in the near future.
The question is to whom this is an ultimatum. At first thought, Greece comes to mind. If the new government of Greece does not play ball with the EU, the country's financial sector will fall into the Aegean. So the new Greek government better think twice before it embarks on an irrevocable strategy.
Or is it perhaps an ultimatum to the EU? The EU could easily make the new government play ball. If the new government is SYRIZA-led, all the EU would have to do is to fulfill all of SYRIZA's demands.
Whatever the case may be, this statement has definitely adds seriousness to some of the mutual bluffing of recent days. There is now a line drawn in the sand and this line seems unsurmountable.
This post was first published at Klaus's blog and is republished here with his permission.