Once Wolfgang Schäuble, the flinty German finance minister, realized that Varoufakis couldn’t play the Grexit card, he knew that he had him where he wanted him. The German government point-blank refused even to consider a Greek request for an end to the bailout and a new bridging loan, and it quietly encouraged the E.C.B. to issue a series of warnings to the Greeks. And then, a couple of days ago, after Varoufakis had reversed course and asked for an extension of the current bailout, Schäuble rejected that request, too, forcing the Greeks to make even more concessions.
Another very good analysis of the Greece-EU deal.