Greece Advised to “Fix Its Economy”

According to the Harvard Business Review, all Greece has to do to help itself and Europe is to fix its economy. To make its efforts to extend its bailout agreement for four months, its economy needs to shape up.

Yanis Varoufrakis. Greek Finance Minister.

HBR said that Greece’s ambitions plan to re-negotiate its bailout terms is far from having success because it is far too ambitious despite having a very big fiscal adjustment accomplished by any developed nation. It had stabilised its economy and had accomplished much in addressing its private debt. However, its official debt to the EU, the ECB and the IMF is still lacking.

Germany is demanding that Greece pay its debts in full through austerity measures. However, Greece’s banking system may collapse in the process. This would have Greece leave the Euro and return to its primary currency, creating a vacuum in the European Union.

Paul Krugman from The New York Times believes that Greece and Europe’s crisis all boils down to giving the voters what they want to hear despite these promises coming short. However, he pointed out that Greece’s economy isn’t growing all the more very well. He insisted Germany look at this reality and give a realistic solution instead by encouraging Greece’s economy to grow.

Leave a Reply

Your email address will not be published. Required fields are marked *