Showing posts from February, 2015

Greece: its not about the austerity

  Greek elections were not about the end of austerity and debt-write off. This was just an election narrative that captured the hearts of the Greek electorate and, surprisingly, dazzled large majority of the pundits, commentators and economists in Europe. As good as it gets As financial analysts are explaining, countries like Italy, Spain, and Portugal are spending larger share of their GDP to service their official debt than Greece. Much of the debt has already been written off or “hair cut”, a lot has been reprogrammed, postponed, the interest rates on the European loans are quite small. The troika is not requiring any substantial new austerity measures anyway. Much of what Syriza claims it wants has been done already. In the  words of Daniel Gros : “… in the end, the difference between a government that has never made good on its promises to pay and a government that promises not to pay might not be that large.” If not much will change with respect to debt and austerity, what was th