This is as far from what Germany wanted as can be imagined. But Greece could not live with German demands, and Germany could not live with Greek demands. In the end, the banking crisis gave Germany an irresistible tool. Now the circumstances demand that the Greeks accept austerity and transfer key elements of sovereignty to institutions under the control or heavy influence of the Germans.
Extremely interesting opinion piece from Stratfor on the Greek crisis. While I do not agree on many points such as the “aggressive inflexibilty of the Germans”, I still believe that the current solution is not sustainable on the long term. The question remains whether we should make a painful break rather than draw out the agony.