Greece is unlikely to pay back more than a small percentage of its current debt (it will default eventually, no country can lose a quarter of its GDP and then s

Greece is unlikely to pay back more than a small percentage of its current debt (it will default eventually, no country can lose a quarter of its GDP and then suddenly have surplus budgets). The current scheme is about turning Greece into an example for Portugal, Spain and Italy (who are all playing around with austerity with varying degrees of success). What this all comes back to is that many of the loans should never have been made and banks made loans for stupid and unprofitable projects. One of the core problems in all of this is that neoliberal political thought is forcing collective responsibility for what was poor commercial and economic management of a few companies, banks and governments on taxpayers in both creditor and debtor states. Responsibility is being enforced through tax dollars going into both debt forgiveness and service cuts. Poor due diligence and risk management on the part of creditors and reckless borrowing is burdening the populations of both "Germany" and "Greece" (where Germany and Greece are the creditor and debtor nations) with the costs.