Perhaps, Greece needs debt forgiveness?

6th June 2017 in
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Greece today finds itself in the unenviable position of having to sell off yet more State assets as part of a desperate battle just to stay afloat under the ridiculous pressure of international bailout terms.

Germany (as part of the EU and in conjunction with the ECB) utterly refuses to allow Greece any form of debt forgiveness, a forgiveness that Greece provided Germany when that country desperately needed it after rampaging across Europe and a host of other countries during WWII.

Greece’s debt crisis is running somewhere north of its 2016 figures – 179% of GDP – and even if it could guarantee the implementation of all its planned financial reforms, which seems highly unlikely, it will not scratch the surface of the problem. The country cannot just ‘grow’ its way out of debt.

Any intelligent person would question the motivation of a lender that continued to give a borrower more money (and added interest) on the basis that it would help the borrower to get back on their feet. It simply will not work, and even with the best wishes in the world, resurgence in tourism isn’t going to cut it.

It is an insane method, unless ‘helping’ is not the real purpose of these loans. Many a layman is now wondering whether the refusal of loan forgiveness is really in order to force Greece into EU subservience, and it is difficult to argue with them.

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