Greek Tragedy

Infographie : François Descheemaekere

[The New York Times]

Editorial - A stubborn standoff is playing out this week between a nearly bankrupt Greece and the wrongheaded European partners it needs to pay its bills. The outcome is, sadly, foreordained. Greece will have to give Europe all or most of what it wants. It cannot survive without Europe’s money, even if it chokes on Europe’s conditions. By now, Europe’s leaders should know this approach will not work. Chancellor Angela Merkel of Germany, the main architect of Europe’s disastrous mismanagement of the euro-zone debt crisis, can keep pretending that harsher doses of fiscal austerity will restore Greece and Europe’s other troubled debtors to economic health.
Or she can recognize that only a combination of greater fiscal breathing room and pro-growth reforms — like opening up closed labor markets, breaking up state monopolies and streamlining bureaucracies — can achieve the desired result. But slashing wages, jobs and public spending across the board, as Europe demands, will only deepen recession.

Lire : nytimes.com