Greece will never be able to pay off the debt, that much we can state as a sure thing. Not even if all Greek GDP were to be used to pay interests and the loans could the country pay off all of its obligations to the bankers.
The third financial rescue pushed forward by Alexis Tsipras and the new austerity conditions imposed by the Troika will not rescue Greece, they will pull the country further down into the dark abyss.
No respectable economista or financial expert has added his or her support to the Eurogroup plan to get Greece deeper in debt as a solution to get it out of unpayable debt.
Giving Greece more cash to pay the banks for a debt that was illegally passed on to the Greek people by corrupt politicians is like fighting fire with gasoline; the fire will just continue to grow out of control and no austerity plan or liquidity injection will put it off.
The only action that would help Greece get out of debt would be a debt ‘haircut’, just as it happened with Germany after the second world war. However, no European member of the Troika wants to extend the same courtesy to Greece. Not right now, anyway.
However, there seems to be a slight chance that the bankers and their technocratic minions may be capitulating about the Greek situation.
Divisions among those responsible for the Greek austerity program have begun to show their disagreement about what whether Greece will be able to meet its obligations and needs to be done to prevent another default.
Chancellor Angela Merkel has now admitted that there is the possibility that Greece’s creditors agree to change the maturity of Greek debt and a reduction of interests to be paid by the Greek government.
In a TV interview in the first German television network, ARD, Merkel said her government and all members of the Eurogroup had not discussed the possibility of accepting a “haircut” of Greek debt.
“That is not possible in a monetary union,” said the chancellor, defending the agreement reached in the early hours of Monday in Brussels.
“Greece has got a break. We took a voluntary cut between creditors and then extended maturities and lower interest rates …. Now we can speak again of these possibilities when a first review of the agreed measures and the result is satisfactory,” said the chancellor.
Merkel, in a rare gesture of transparency of information, also denied there was a problem of loyalty between her and her finance minister, Wolfgang Schäuble, who said that the German democracy admitted a difference of opinion between politicians in government.
Schäuble defended at the summit in Brussels the possibility that Greece leaves the euro area for five years, a proposal that was interpreted through Europe as a German blackmail against reece and made many people believe that the powerful German Minister defended a different position thant that of the Chancellor, who always defended the permanence of Greece in the euro zone.
“The Grexit was on the table but we decided for another option. What counts now is the result of negotiations. Euro zone members agreed to negotiate with Greece a new aid package and that is what we implement now,” said Merkel, who revealed that her minister had not yet submitted the resignation, as many mainstream media had suggested.