Bethlehem—(Updates with Tsipras political problems) Once again–the third time–Europe has come up with a bailout plan that ignores the contradiction between austerity to pay of creditors and the need to stimulate growth, which would make it easier to pay of creditors.
Why anyone thinks this package of $89 billion harnessed to severe spending cuts and higher taxes along with enforced privatization will work better than previous formulas is a mystery. Similar things ere tried in 2010 and 2012 and failed. So Greece and its olives and sunshine stay in the Eurozone.
No matter to the folks who long ignored Greece’s economic weakness and corrupt governments but lent money anyway. The preservation of the 19 member Euro club has been preserved, uber alles, as Germany’s Chancellor Angel Merkel might say, if she weren’t busy trashing Greece..
Greek Prime Minister Alexis Tsipras turned out to be a radical leftist paper tiger while strict school marm Germany seems more bullying forever. With members of his own Syriza Party and other members of his coalition in revolt, he may be out of a job–joining millions of other Greeks in unemployment over austerity demands.
Tsipras political woes roundup.
Here is the WSJ with downbeat analysis.