While Tsipiras continues to argue that Greece needs to remain in the Euro and the memorandum is toxic, Hollande responds with veiled threats of expulsion, and Rajoy sets down plea for greater European integration in a letter to Van Rompuy (ElPais.com in English)

"It is necessary to adopt decisive and forceful measures to leave clear the irreversibility of our integration project, and in particular the single currency," the letter said. "The uncertainty regarding the euro is preventing the adjustment measures many countries are carrying out to have the desired effects that they should have," the letter continued. "This situation is worsening in an accelerated manner and it is necessary to address it as soon as possible."

Rajoy made the revelation on Wednesday in Congress, where he told lawmakers that what was required at the moment is for European to make a strong commitment statement in favor of greater union before opening a debate on how best to achieve this. "The future of the euro depends on us initiating this debate," he said. "The road won't be easy but it is an indispensable goal on which we must be in agreement."

But don't worry, Germany and the Netherlands think everything is a-ok. From Eurointelligence: Germany says no to banking union- existing tools are apparently adequate

We always feared that Angela Merkel's recent endorsement of a political union was a deflection, and this fear is now confirmed. The FT reports from Berlin that German officials are now playing down any expectations that Germany is ready to support a banking union and eurobonds, insisting that the existing tools of crisis resolution are adequate.

Instead German officials are pretending that they support a long-term process of political union. We are now back to where we were before: there is a need to act fast, but the German chancellor is chronically incapable of making the political case for burden sharing. Expectations in the German media, and among coalition politicians have also been "managed" in such a way that an agreement for a banking union would come as a total shock.

The Dutch finance ministry also said yesterday, according to Reuters, that a banking union should be seen as a long-term project that cannot be implemented immediately.

If you are not convinced, try it on someone who has not been entirely debauched by economics. — Piero Sraffa