German rhetoric suggests that they are preparing to try and kick Greece out of the Euro

Greece has voted No, and resoundingly so. But the reaction from Berlin tonight does not suggest that Germany is prepared to have any further negotiations with the Syriza government. The vice chancellor, and head of the SPD, Sigmar Gabriel has declared that “With the rejection of the eurozone’s rules of the game, which has been expressed in this majority ‘no’ vote, negotiations on further multibillion euro programs are scarcely conceivable.”

Given that the SDP is more doveish than the CDU and the CSU on the Greek question, this sounds like Germany has given up on trying to strike a deal and now wants Greece to leave the Euro. Indeed, one influential CSU politician has already publicly suggested that Greece might be better off outside the Euro.

Now, the French are sounding a more emollient note. So, the Germans might be positioning ahead of the Merkel Hollande meeting tomorrow and the emergency EU Council meeting on Tuesday.