The sticking point, apparently, is that the Greek government wants to raise taxes, and the IMF wants it to cut spending.
The IMF is right here. Higher taxes will mean richer Greeks move out, or evade them. Spending cuts will lower the deficit, and free the economy to a degree, adding to growth.
To rephrase the current positions, Greece says, “I want to eat more.” The IMF says, “We want you to go on a diet.”
If they do exit the Euro, boy oh boy will they be going on quite a diet.
This is really a contest in how much Greece’s leftist government really believes in the power of money printing. If they think it really does solve everything, they’ll leave the Euro and print their own if they don’t get the deal they want.
Will this be the last last last last deadline? I don’t know. Somehow I doubt it.