This is already being perceived as a “selective default”. It affects some of the investors' bonds. It would leave the bond holders worse off than before.This means that everybody will have to go back to the drawing board and come up with a new bailout plan. Sovereign debt within the EU cannot be allowed to default. That would adversely affect the currency. Investors wouldn't take it seriously.
Germany knows all these things. But now they're on vacation Hopefully so are the taxpayers. They have until September.