So, the gloves are off. Anyone who thought negotiations between the new radical-left Greek government and its creditors were going to be conciliatory, or even rational, must think again. It’s only a few days since Syriza’s seismic election victory and the installation of Alexis Tspiras as Prime Minister. Yet discussions over Athens’ €350bn (£240bn) debt mountain – owed mainly to other eurozone governments, the International Monetary Fund and European Central Bank – have already turned ugly.
Greece and its official creditors are now issuing full-blooded threats and counter-threats, regardless of the impact on financial markets. The Athens Stock Exchange endured single-day double-digit percentage falls last week. On Tuesday, Greek banks, effectively controlled by official foreign creditors, lost over a quarter of their value.