5 ms·
So after default, where would the money have come from to pay teachers and police salaries, pensions, public services, etc? And how would the country import oi
by derriz 12y ago
So after default, where would the money have come from to pay teachers and police salaries, pensions, public services, etc? And how would the country import oil, medicine, technology, etc?
Even if current Greek debt was wiped out overnight, the government would still need loans just to pay day-to-day bills. It's hard to tell how much since lying about government spending is a Greek institution (for example, they've "revised" the 2009 deficit number 3/4 times since then) but conservatively a few billion a month would be required even if they had no debt.
The unfairly vilified troika not only gave Greece the money to pay off all their loans at very reasonable rates but also promised to continue to lend money to give Greece some time to sort out their primary deficit (deficit without interest payments). No Syriza is telling the rest of the EU that they will reverse the moves to fix the primary deficit but that the EU must continue to pay for it.
- ptaipale 12y agoAnd Greece actually sorted out that primary deficit for a moment, in second half of 2013. Then, in 2014, the election campaigning started again.