The EU has never been anything except one giant bluff coupled with constant appeals to Ragnarok:
Did Europe just fold?Once Greece leaves, the EU is a walking corpse. So they will do absolutely anything that will be less immediately destructive than a nation leaving the Euro, or more significantly, the EU.
Moments ago Bloomberg blasted a headline which has to be validated by other members of the European Commission as well as Merkel and the other Germans (and may well be refuted, considering this is Europe), which said that:
COMMISSION TO PROPOSE 6 MONTH EXTENSION FOR GREECE - SOURCES.
So did Greece just win the first round of its stand off with Brussels? It remains to be confirmed, but congratulations to Greece if indeed it caused Merkel and the ECB to fold.