Germany and France already made the deal to give Greece another 100+ billion euros and allow Greece, in essence, to repudiate half of its debt. Greece is trying to find a way to repudiate all of its debt and continue big spending without stopping the flow of free euros from other countries. ...same with other tourist traps in southern Europe.
I think you are on to it. They want to repudiate all of their debt and still stay in the Euro zone. They will probably be successful because everyone fears the collapse of the Euro more than they do bailing out Greece. Additionally, collapse of the Euro will expose the true depth of all of Europe’s debt and fantasy land bank books. My guess is that they are leveraged at least 40 - 50 to 1.
Few will willingly agree to the cuts. Just look at the NBA strike for starters. For that matter, look at the social security threads.
The Greek government knows that they can't do what the EU wants, and they know that the military just might be tempted to take over again.
For all my jokes, this is a very dangerous time. In a few years we might be looking at a hard communist revolution through out Europe.