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The reason we rejected thelast bailout was because it didn’t include any terms of debt relief which is the only way for the economy to recover. Well, accordin
by exceptione 11y ago
The reason we rejected thelast bailout was because it didn’t include any
terms of debt relief which is the only way for the economy to recover.
Well, according to many the way to recover is to make sure the state doesn't spend too much. The public sector is way too big and inefficient. Many european voters were against plunging into depts so that the money could be sent to greece. European leaders did it in anyway, in part to save the banks. Everyone in the other euro countries is carrying a huge dept for you right now, thousands of euro's even for newborns.
Even though the european leaders vowed to their voters that all their money was going to be paid back to them, Greece had to pay back less than the european voters gave due to low interest and generous installments. Some earlier debts were written off already.
Also, if Greece would have started to give the creditors slight hints that they were actually making the economy more healthy, than it would be easier for the euro leaders to break their pledges and forgive debts.
The current economy doesn't suffer from the debts, it is suffering because it is structurally broken. Before Tsipras started to take over, the economy was getting better.
He increased government spending.
Even if all Greece's debts were forgiven, it would still have the problem of a third world economy. RIGHT NOW Tsipras is asking for more money, because the economy is structurally not sustainable.