Darvas, Zsolt, Hutl, Pia, (2016), “Is Greek public debt unsustainable?”, Bruegel, 7 May
Greek public debt does not look sustainable if the country has to return to market borrowing at the end of the third bail-out programme, but could be sustainable if preferential ESM funding continues in the long-term. Our advice is to offer hope for Greece in the form of delayed fiscal adjustment toward a target of 2.5% of GDP primary balance and adopt various measures to ease the debt burden, for the benefit of both Greece and its official lenders.
Relevant Posts
- El-Arian, Mohamed A., (2016), “Time for Debt Reduction in Greece”, Project Syndicate, 22 April
- Royo, Sebastian, (2014), “Banks and the political economy of the sovereign debt crisis in Italy and Spain”, CES papers