AMY WINEHOUSE A DIARY OF HER DESTRUCTION WORLD CUP 3 IS LUCKIEST NUMBER FOR U.S. AT DIOR, REFLECTING A REALITY GAP PAGE 13 PAGE 14 PAGE 9 | CULTURE | SPORTS | HAUTE COUTURE PARIS .... TUESDAY, JULY 7, 2015 Germany holds line on Greek debt ATHENS Berlin’s position opens rift in E.U. after Tsipras takes conciliatory steps BY LIZ ALDERMAN AND JACK EWING CHRISTOPHER FURLONG/GETTY IMAGES — AGENCE FRANCE-PRESSE Graffiti on Monday altered a sign on the Bank of Greece in Athens to read ‘‘Bank of Merkel.’’ The government extended a bank holiday set to end Tuesday through Wednesday. Clinton camp wary of challenge from left Sanders’s strong showing raises concerns she will lose Iowa caucuses again BY AMY CHOZICK AND PATRICK HEALY With Senator Bernie Sanders showing unexpected strength in fund-raising and opinion polls, concerns are growing among Hillary Rodham Clinton’s allies and some advisers who foresee a sce- nario in which the socialist from Vermont could overtake her in Iowa polls by fall and even defeat her in the nation’s first nominating contest there. Mr. Sanders’s rising fortunes pose a bind for the Clinton team. Directly challenging the senator on his policies and record could elevate his candidacy, alienate some liberal Democrats and make Mrs. Clinton look anxious. Yet continuing the current strategy — vigorously courting voters while hoping they conclude that Mr. Sanders is unelectable — requires Mrs. Clinton to put faith in an Iowa electorate that broke her heart seven years ago by choosing Barack Obama (and John Edwards) over her. The talk among Mrs. Clinton’s supporters about Mr. Sanders is driven, in part, by a desire to lower expectations for her in Iowa and other states with caucuses, a political system in which voters debate the strengths and weakness of candidates, and one that she has struggled to master. Those who see Mrs. Clinton as being at risk in Iowa say she is still far better positioned to win the nomination than Mr. Sanders, who lags by double digits in Iowa polling. He also has far less money than she does, and his socialist leanings are anathema to many Americans. How deftly her campaign runs against Mr. Sanders’s, especially if he gains ground, remains an open question. ‘‘Certainly she could lose Iowa,’’ said Joe Trippi, a veteran Democratic strategist who managed Howard Dean’s 2004 campaign. If that happened, Mr. Trippi said, ‘‘mostly they’d just have to ride out the punditry IOWA, PAGE 5 Germany struck a hard line with Athens on Monday after Greek voters rejected Europe’s austerity policies in a referendum, intensifying pressure on Prime Minister Alexis Tsipras to restart bailout talks and opening a rift with European countries that appeared more inclined now to consider softening the push for austerity. Mr. Tsipras moved quickly to take advantage of the result of the vote, shuffling his cabinet and persuading most opposing political parties to join him in his basic demands from the country’s creditors, including discussions on debt relief and providing aid to bolster the Greek economy in the short run. But Greece remained close to financial collapse, with both the banking system and the government quickly running out of money. To the degree that any negotiations drag on for days or weeks, the pressure on Greece will only grow, potentially undercutting the jubilation felt among the overwhelming majority of Greeks who voted on Sunday against accepting additional austerity. The government decided Monday that a bank holiday scheduled to end Tuesday would now be extended through Wednesday, and said that a withdrawal cap of 60 euros, or $67, per day from A.T.M. machines, in place since last week, could be tightened. An announcement with the details was expected on Monday evening. During the day Monday, long lines formed again at cash machines throughout Athens as people continued to withdraw whatever they could. If a deal for emergency financial aid or a reduction of the nation’s mountainous debt is not struck soon, Greece will probably default on its international debts this month and have even more trouble than it already is paying civil servants and pensioners. Should Greece run out of euros in the absence of a deal, it could soon be forced to issue a parallel currency or i.o.u.’s to pay its domestic bills, leading it out of the euro currency. Mr. Tsipras on Monday took the first steps toward conciliation with Greece’s creditors. The combative finance minister, Yanis Varoufakis, abruptly resigned at Mr. Tsipras’s behest, and was replaced by Euclid Tsakalotos, an Oxfordeducated economist who took over from Mr. Varoufakis as Greece’s lead negotiator in April. After a six-hour meeting, the leaders of Greece’s five main political parties issued a statement saying they wanted any negotiation to include a discussion of relief from the country’s debt load — a key sticking point with creditors — as well as immediate help to keep the banks afloat, quick economic aid to tackle unemployment and new bailout money to cover its current debt obligations. In return, the statement said, Greece would be willing to deliver ‘‘credible reforms based on the fair distribution of the burden and the promotion of growth with the smallest possible recessionary impact.’’ Germany, the eurozone country to which Greece owes the most money and the one that has tended to take the hard- GREECE, PAGE 4 WORLD MARKETS DIP AFTER GREEK VOTE Investors reacted with muted dismay to the results and showed nervousness about China’s stock market. PAGE 16 THREATS TO EUROPE’S CLOSER UNION The Greek debt crisis is just one of four major challenges facing ‘‘Project Europe,’’ Paul Taylor writes. PAGE 20 Merkel faces pressure to guide E.U. in crisis BERLIN Even as artifacts in museums, Confederate flags stir emotions RICHMOND, VA. BY SHERYL GAY STOLBERG KHUE BUI FOR THE NEW YORK TIMES A flag from the vault of the Museum of the Confederacy in Richmond, Va. New times — and declining attendance at such museums in the South — demand new ideas, officials say. One floor below street level in the Museum of the Confederacy here, at the end of a cinder-block hallway behind two sets of locked double doors, a climate-controlled vault contains the world’s largest collection of some of the most revered and reviled objects in American history: Confederate-era flags. Here, painstakingly preserved and cataloged, are more than 550 wartime silk, wool and cotton flags. One, fashioned from bridal clothes, has the word ‘‘Home’’ in blue applique, encircled with blue stars. Another features an oil painting of Pocahontas. Still another, the now-controversial Southern Cross battle flag was once owned by Tad Lincoln, a son of the former president. It hangs in a gallery upstairs. As the museum’s chief historian and author of a scholarly book on the flag, John M. Coski, a slender and slightly rumpled 56-year-old, works hard to bring its various versions to light — part of what he calls a ‘‘conscious effort’’ by officials of the 119-year-old institution to ‘‘modernize from a shrine’’ to the old South into ‘‘a modern, Smithsonian-like museum.’’ But as debate rages across the South FLAG, PAGE 8 INSIDE TO DAY ’S PA P E R ONLINE AT INY T.COM Haggling over Iran sanctions Soccer group plans overhaul Bubbling just beneath the surface in the drawn out nuclear negotiations, the issue of lifting all United Nations sanctions has taken on a larger meaning. WORLD NEWS, 4 Concacaf, the governing body in North America and environs, is proposing such changes as term limits for its top officials. nytimes.com/soccer Veterans lead healing in Vietnam A book and a film series at the Museum of Modern Art explores the contributions that Technicolor and its processes have made to filmmaking. nytimes.com/movies Technicolor turns 100 A visit to Washington by the leader of Vietnam’s Communist Party is seen as a strong statement on the establishment of diplomatic relations. WORLD NEWS, 3 Nonprofit groups are supposed to limit their political activity, but the I.R.S. appears powerless to stop the onslaught of money coursing through them. nytimes.com/politics Roger Cohen Line Webtoon, a portal for free digital comics that was founded in South Korea, is joining with the American comics icon Stan Lee for its push into the United States. nytimes.com/media Industry insiders say the trend of offering a wider selection of gaythemed comic books echoes America’s evolving attitudes. BUSINESS, 17 As chancellor of Germany, Angela Merkel leads a nation that prizes fiscal rectitude and adherence to the rules, and, after pledging tens of billions in bailout programs for five years, has expressed scant sympathy for Greece’s demand for more financial help. As de facto leader of Europe, Ms. Merkel faces a very different set of responsibilities, starting with maintaining European unity in general and holding the euro currency together in particular. In the wake of Greece’s landslide vote on Sunday to reject bailout terms that had been offered by its creditors, Ms. FABRIZIO BENSCH/REUTERS Ms. Merkel’s domestic critics may be emboldened by Greece’s rejection of a deal. Merkel now confronts greater pressure than ever to resolve those clashing sensibilities — a challenge that will test her leadership abilities and help determine Europe’s direction at a pivotal moment. ‘‘This has taken on a political dimension that far exceeds the economics,’’ said Jan Techau, director of Carnegie MERKEL, PAGE 4 VERSAILLES NOVEMBER 17–18, 2015 Digital comics site looks to expand The European Union should give Alexis Tsipras what he wants. It’s the only way to make the Greek prime minister face up to his responsibilities. OPINION, 7 NEWSSTAND PRICESINFORMATION, CALL: FOR SUBSCRIPTION Croatia KN 20.00 Great Britain £ 2.00 00800 44 48 78 27 Cyprus ¤ 2.90 Greece ¤2.50 Kosovo ¤ 2.50 Latvia ¤ 3.25 Lebanon LP 5,000 Germany ¤ 3.00 Lithuania LTL 15 Hungary HUF 800 Israel NIS 13.00/Eilat NIS 11.00 Luxembourg ¤ 3.00 Italy ¤ 2.80 Macedonia Den 150.00 Ivory Coast CFA 2.500 Malta ¤ 3.00 Jordan. 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