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Fundamentally the problem with Greece is that the IMF & EU are focussed on saving the Euro. Meanwhile Greece is unable and / or unwilling to meet it's Eurozone
by wmil 10y ago
Fundamentally the problem with Greece is that the IMF & EU are focussed on saving the Euro.
Meanwhile Greece is unable and / or unwilling to meet it's Eurozone obligations.
The only real solution it to toss Greece out, but negotiate a smooth transition to a new drachma. Convert all existing debt to drachmas. Greece can deal with the outstanding debt by devaluing their currency.
However they'll have to choose between letting pensions see their purchasing power decline, or finally cracking down on tax cheats.
But people have a strange moral attachment to the EU / Euro. So it won't happen.
- ethbro 10y ago> Convert all existing debt Would that include the debt from northern European banks already offloaded onto them? Because that seems like an equally terrible deal. "We're going to bail you out with a loan, the balance goes to your creditors, you're responsible for repayment, and everyone is pissed at you because we told them we were giving you cash."