Why Greece declined a euro holiday

Brussels

FOR the entire first half of this year, since the far-left, anti-austerity Syriza party came to power in January, the Greek saga virtually monopolised the attention of European policymakers. Even as their country's economy crashed, Greece's new government remained adamant in demanding debt relief without austerity - that is, until mid-July, when they suddenly agreed to the creditors' terms. Indeed, as of July 13, Greece's staunchly anti-austerity government has been obliged to impose even tougher austerity and pursue painful structural reforms, under its creditors' close supervision.

Why did the Greek government concede to terms that not only controverted its own promises, but also closely resembled those that voters had overwhelmingly rejected in a popular referendum barely a week earlier?