3 June 2015

Starved of aid and access to bond markets, Athens is precipitously close to running out of money.

The joint effort by the European Commission, the European Central Bank and the International Monetary Fund to set out the terms for a cash-for-reforms deal came after the leaders of Germany and France held emergency talks with those institutions in Berlin yesterday to press the lenders to bridge their own differences and find a solution.

Despite defiant rhetoric and face-saving efforts, the Greek leader seems likely to have to swallow painful pension and labour reforms, facing the choice between putting them to parliament at the risk of a revolt in his Syriza party, or calling a snap referendum.