Have the Greeks just blinked?

The Syriza-led Greek government has just submitted a new set of proposals to their creditors. It appears to shift Greece closer to the creditors on VAT and pensions reform. It is also, as many have been quick to point out, really quite similar to the proposal that the Greeks voted against in last Sunday’s referendum. Indeed, it doesn’t even appear to contain any demand for debt relief for Greece.

The Greek proposal has been drawn up with French assistance, the New York Times is reporting, which suggests that Paris should be sympathetic to the proposals. The question then is how the Northern European countries, led by Germany, react to it?

But before the Eurozone finance ministers examine the proposals on Saturday, they will have to get through the Greek parliament. This is no done deal. Syriza MPs will meet to discuss the proposals at 8am tomorrow.