Greece would face unprecedented hardship if capital controls were introduced and the Syrizia party would see its populist support plummet rather fastHard though it is to believe sometimes, Alexis Tsipras does want to strike a deal. The increasingly abrasive language used by the Greek prime minister is a front for a politician who still thinks it is possible to negotiate his way out of the sticky situation he finds himself in.That has to be the assumption. The alternative to a deal would appear to be a Lehman Brothers-style moment sometime in the next 72 hours, when the Greek banks haemorrhage money and capital controls are introduced. At that point, support for Tsipras and his Syriza coalition is likely to dissipate rapidly, especially if Greece’s eurozone partners say capital controls are incompatible with membership of the single currency. Related: Greece crisis: Tsipras blasts 'criminal' IMF in defiant speech - live updates Related: Angela Merkel stands firm on finding resolution to Greece crisis Related: Eurozone braces for Greek exit as Athens threatens to miss IMF payment Continue reading...
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