Behind Germany’s refusal to grant Greece debt relief – Op-Ed in The Guardian
by George Hatjoullis
I have some sympathy with this view as my blogs should have already demonstrated. However this does not mean the approach taken by Syriza was practical or ever likely to succeed. A common view of the problem does not imply a common view of the solution. In the interest of balance one should also read the post by Oliver Blanchard of the IMF which will be the next reblog.
Tomorrow’s EU Summit will seal Greece’s fate in the Eurozone. As these lines are being written, Euclid Tsakalotos, my great friend, comrade and successor as Greece’s Finance Ministry is heading for a Eurogroup meeting that will determine whether a last ditch agreement between Greece and our creditors is reached and whether this agreement contains the degree of debt relief that could render the Greek economy viable within the Euro Area. Euclid is taking with him a moderate, well-thought out debt restructuring plan that is undoubtedly in the interests both of Greece and its creditors. (Details of it I intend to publish here on Monday, once the dust has settled.) If these modest debt restructuring proposals are turned down, as the German finance minister has foreshadowed, Sunday’s EU Summit will be deciding between kicking Greece out of the Eurozone now or keeping it in for a little while longer, in a state of…
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