In addition, the Eurozone core is convinced, especially Germany, that the financial risks are finally ringfenced and Grexit is manageable.

I think this is key.

While Germany believes that Grexit is manageable, Grexit gets ever more likely, because what reason is there for Germany to compromise?

And it has to be clear eventually to Syriza that it is impossible to satisfy Germany and save the Greek economy.

Hence - Grexit.

Spain's economy minister is happily wading in on the Greek debate again today after getting in to a bit of hot water earlier in the week.

Luis de Guindos is sticking to his guns, repeating his comment that Greece will need a third rescue in the region of €30-50bn.

De Guindos told a conference in Barcelona that Europe would use the four-month bailout extension secured by Greece to assess what progress has been made, and what the next move should be.

We have given ourselves these four months to one, see what the real situation is, to see how Greece has met conditions and to try and establish what happens next ... which is fundamentally a third rescue.

He added that ministers at next week's eurogroup meeting would consider Greece's liquidity needs and debt maturities.

De Guindos comment earlier in the week that the eurozone was working on a third rescue package for Greece ruffled a few feathers.

In response, a spokeswoman for eurogroup chief Jeroen Dijsselbloem insisted that finance ministers were not discussing a third bailout.

One assumes he's talking about an extend-and-pretend package like the last two, on condition that the Greeks stick to the rules that ensure it will be unsustainable...

Still, it seems surprisingly honest and lucid of him to say it.

_{It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II}