The nature of the “Greek problem” has now ceased to be fiscal. Hence, the Troika’s insistence on the adoption of new austerity measures, in 2014 and 2015, is based on an arbitrary (if not metaphysical) assumption regarding the “120% of GDP” public debt sustainability threshold, and delivers a toxic policy mix. The correction of macroeconomic imbalances is not achieved through the creation of a new sustainable growth model, but through the amputation of the economy. The old “Greek way” of doing things is dying, but there is nothing to replace it, because nothing can grow in the asphyxiating environment of manic consolidation, and simultaneous cash and credit crunch. An emergency European investment program could increase the chances of averting a Greek implosion.
Πλήρες Κείμενο (διαθέσιμο στην αγγλική γλώσσα)