Eurozone finance ministers will on Monday threaten an end to negotiations on debt relief for Greece unless its new radical Left government promises to honour all existing austerity agreements.
Eurozone officials are convinced that the EU holds all the trump cards in the coming clash with Greece's leader-in-waiting, Alexis Tsipras, including the nuclear option of letting Greek banks collapse. They believe Mr Tsipras knows his weakness.
The hardline approach will be sugared with offers of flexibility on the detail of austerity measures, and a move to allow Greece more time to meet an end of February deadline for renewal of key EU loans that are keeping the country’s economy afloat.
[source : Greece must bow to austerity or go bust, says EU, The Daily Telegraph, http://www.telegraph.co.uk/news/worldnews/europe/greece/11368634/Greece-must-bow-to-austerity-or-go-bust-says-EU.html, 26th January 2015]
From this it looks like the EU is prepared to be more flexible but still demand some austerity. But as Syriza is pro-EU then this is likely to happen. It may have been agreed already...
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