Friday, July 10, 2015

It is official then.  Greece has surrendered.  All that holding out, tough bargaining, calling a referendum, and voting Ohi! have come to nothing.  Syriza has agreed to terms tougher than the ones they just rejected.  In return, they have asked for some measure of debt relief.  There is definite momentum in Europe, with the possible but not certain exception of Germany, to agree.

So two questions remain.  Will the Germans accept the surrender?  (The other Europeans appear to be agreeable).

And, assuming that they do, will the positive effects of debt restructuring outweigh the harm from further austerity, and from the crisis?  I don't even understand what what the proposed debt restructuring means, let alone how long it will take to yield benefits (if ever).

And, I suppose, there is a third question.  How will all this effect other anti-austerity parties in Europe?

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