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posted by martyb on Monday July 06 2015, @08:57AM   Printer-friendly
from the getting-what-you-asked-for-may-not-be-getting-what-you-want dept.

The Greeks voted no to the European Union's terms, despite warnings from the EU that rejecting new austerity terms would set their country on a path out of the Eurozone. 62% voted "No" while 38% voted "Yes".

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  • (Score: 0) by Anonymous Coward on Tuesday July 07 2015, @05:57AM

    by Anonymous Coward on Tuesday July 07 2015, @05:57AM (#205999)

    Throughout history, Germany has repaid debt, Germany has had debt forgiven and Germany has forgiven debt. Germany should also be allowed to expect repayment. There are many other countries in the Eurozone which are also not willing to forgive Greece's debt at this point in time.

    Greece has been granted several haircuts already. They seem to think that this can go on and on, but it can't. It would be devastating to the Eurozone to give them another haircut now, because it would send all the wrong signals. In time, if Greece has made the necessary reforms and has proven that it can and does live within its means (except for the debt burden), then and only then can we talk about another haircut. The debt that Greece has is already put off so long that it is not really an impediment to growth, just a showstopper for more uncontrolled spending. We would have to talk about the debt if it were actually part of Greece's problems right now, but it isn't. Greece's problems are a result of a corrupt, wasteful and ineffective state apparatus, and the fact that the Greek people are comfortable with that kind of situation. This can not be solved by forgiving their debt and thereby giving that consistently failing administration more time. Greece needs to change if it wants to stay in the Eurozone, now.

    It is worth noting that the loudest calls for debt relief come from uninvolved parties and from parties who expect to be paid: The IMF does not forgive debt, but expects Europe to bail out Greece so that Greece can pay its debt to the IMF. The US has geopolitical interests, but does not pay a dime to Greece. There are some private funds which have invested billions in Greek bonds with very high risk premiums after the last haircut, fully knowing their risk, but certainly expecting Europe to unconditionally help Greece. These funds will not forgive any debt, but rest assured that they are behind some of the calls for debt relief.

    Long story short, the debt is not going anywhere, for now.