Germany and France announced that Greece will not get the bailout it needs unless it gets tougher and faster in implementing promised austerity measures. Only about one-quarter of promised measures have been implemented, and targets for deficit reduction have not been met.
Of course, that is because Greece’s economy is falling off a cliff — or more accurately, being pushed off by these austerity measures. GDP has fallen 3% each of the last two years, and some projections are for twice that decline this year.
It’s a bit like threatening someone that they won’t get their reward unless they kill themselves first — what is the point?
That is exactly what many Greeks are asking themselves, as hospitals run out of syringes and bandages due to cuts in public spending, people lose their private health insurance with their jobs, homeless shelters and food banks start to turn people away because the numbers seeking help have grown so dramatically… Is this worth it to save the Euro? For whom?
It seems doubtful to me this can go on much longer.