One cannot help but feel that the Greek tragedy is nearing some sort of endgame. The streets of Athens are burning as people try to resist yet another round of austerity medicine repeatedly prescribed by the EU/IMF and forced down their throats by the Greek government.
Even though there is ample evidence that the current medication simply does not work – instead triggering huge social and economic side effects – policymakers at the IMF, the EU and the ECB are unwilling to rethink their diagnosis and cure.The eurozone is at breaking point and Greece is trapped. The markets have long acknowledged this, as almost all European banks and even the biggest Greek private bank are radically reducing their exposure to Greek bonds. Somehow engineering an agreement to go on with the current policies and continuing to pour more money into this black hole will not resolve the crisis but make the long-term costs even worse. The Greek sovereign debt crisis will not be resolved this way. So what can we do?
Henning Meyer
guardian
