Greece’s public debt has become highly unsustainable. This is due to the easing of policies during the last year, with the recent deterioration in the domestic macroeconomic and financial environment because of the closure of the banking system adding significantly to the adverse dynamics.This charade cannot go on. Hollande's participation in it discredits and dishonors him. To echo Matteo Renzi, enough is enough.
The financing need through end-2018 is now estimated at €85bn and debt is expected to peak at close to 200 percent of GDP in the next two years, provided that there is an early agreement on a program. Greece’s debt can now only be made sustainable through debt relief measures that go far beyond what Europe has been willing to consider so far.
Tuesday, July 14, 2015
Tragedy, Farce, Theater of the Absurd
Even as François Hollande was preening himself in today's 14 July interview on his brilliant role in "saving the euro" ("J'ai dit à Alexis, maintenant, après le réferendum tu es plus fort, mais tu es aussi plus faible"), the IMF was revealing the absurdity of the latest round of extend and pretend: