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> Both the IMF and the public agreed with him. From my reading of the IMF report abstract, it seems that they believe the debt is unsustainable given that Gree

by danem 11y ago

> Both the IMF and the public agreed with him. From my reading of the IMF report abstract, it seems that they believe the debt is unsustainable given that Greece didn't follow the plan laid out in the 2012 framework. Hardly a change of message, I'd say. Relevant passage: > By late summer 2014, with interest rates having declined further, it appeared that no further debt relief would have been needed under the November 2012 framework, if the program were to have been implemented as agreed. But significant changes in policies since then—not least, lower primary surpluses and a weak reform effort that will weigh on growth and privatization—are leading to substantial new financing needs. http://www.imf.org/external/pubs/cat/longres.aspx?sk=43044.0 http://www.imf.org/external/pubs/cat/longres.aspx?sk=43044.0

peterfirefly 11y ago
> not least, lower primary surpluses and a weak reform effort that will weigh on growth and privatization Here's a wonderful anecdote about their glacial and incompetent privatization: http://www.forbes.com/sites/timworstall/2015/07/03/the-airbus-planes-an-excellent-example-of-how-greece-got-into-this-mess/ http://www.forbes.com/sites/timworstall/2015/07/03/the-airbu... Note the marvelous bit about the hundreds of clients the non-selling of 4 Airbus planes provided jobs for.
toyg 11y ago
They stopped following austerity because things were getting intolerable for the average person. By the time the medicine could have 'worked', the patient would have been long dead. So the change in policy was inevitable, as it was debt relief. If Merkel and Schauble had agreed to debt relief 6 months ago, accepting that it was a price worth paying for the stability and long term wealth of the eurozone, things today would be looking rosy. Unfortunately, they could not get themselves to reveal to their electorate that the 2012 bailout was for European banks and arms dealers rather than the Greek people (which is now long overdue), and here we are.

by danem 11y ago

peterfirefly 11y ago

> not least, lower primary surpluses and a weak reform effort that will weigh on growth and privatization Here's a wonderful anecdote about their glacial and incompetent privatization: http://www.forbes.com/sites/timworstall/2015/07/03/the-airbus-planes-an-excellent-example-of-how-greece-got-into-this-mess/ http://www.forbes.com/sites/timworstall/2015/07/03/the-airbu... Note the marvelous bit about the hundreds of clients the non-selling of 4 Airbus planes provided jobs for.

toyg 11y ago

They stopped following austerity because things were getting intolerable for the average person. By the time the medicine could have 'worked', the patient would have been long dead. So the change in policy was inevitable, as it was debt relief. If Merkel and Schauble had agreed to debt relief 6 months ago, accepting that it was a price worth paying for the stability and long term wealth of the eurozone, things today would be looking rosy. Unfortunately, they could not get themselves to reveal to their electorate that the 2012 bailout was for European banks and arms dealers rather than the Greek people (which is now long overdue), and here we are.