Greece: The Government Prepares for Battle

Greece is running out of time and money. To counter this desperate situation, its government is working on a new list of proposals for economic reform to present to the Eurogroup as early as March 30. Between April and June, Greece and its lenders will negotiate a series of compromises. In the meantime, the Eurogroup will provide Greece with just enough money to prevent a default.

However, Greece's main threat will come from home. The government will have to deal with a potential rebellion by lawmakers who oppose some of its proposals. The splits will become more visible in April, when the reforms come to a vote, and they will escalate in late June, when Greece has to seek out a new deal with its lenders. By then, the political pressures on Greece could lead to early elections or even a referendum on Greece's membership in the eurozone.