There is one good thing about Greece: it is the best possible example to the world of the dangers and stupidity of socialism - and the catastrophes that come from self-indulgence (the sort demonstrated by the nitwits voting against necessary austerity).

The privatisation estimates seem overly optimistic!?

What greece needs is growth and more growth than that provided by privatisation; which in the first instance will reduce Greece's long term revenues and increase essential service price structures!?

I mean what is left after they've sold everything not nailed down and how does selling a few greek islands, to tax avoiding foreigners help their long term prospects?

While they might fix a few things in the short term, what they need to consider is their long their future; and a possible economic cure that could be worse than the economic disease they've created?

What they need is an economic growth plan not a recipe for further contraction, just to help the German Chancellor win the next election!?

Economic growth is they only way that they can ever hope toeventually draw down the debt burden they've foolishly created.

And that outcome is not assisted by them accepting any more refugees!

Who should be resupplied as the least costly solution and pushed further up the European coast toward Germany maybe?
Rhrosty.

Greece has had just as many conservative governments as socialist ones and only the simple minded, would heap all the blame on socialism; which seems to work quite well in a more pragmatic Scandinavia!

The problem hasn't been socialism per se, but unprecedented tax avoidance and employing 3 public servants for every one job!

I mean, the antiquated railway would have cost less if the government had simply abandoned it and put their fare paying travelers in free taxis to anywhere they wanted to go! And when they were in the conservatives could have fixed all that!

If they'd had a competent manager between them, instead of creating tax breaks for their equally incompetent buddies, who between them haven't another idea beyond screwing the life blood of their operations, their workforce!

Endemic tax avoidance is legendary in Greece and the real example we must avoid emulating at all costs.

[Tax avoidance is just theft from those still honest enough to pay their fair share.]

We've already created a structural deficit which can only get worse and force us to eventually follow greece unless fixed!

Greece couldn't live beyond their limited means forever, neither can we!

And we are not helped by successive fear mongering governments, who refuse in the name of much maligned socialism; to develop our most abundant and seriously cleaner resources!

Misplaced labels didn't bugger Greece; just patent incompetents from both side of the political divide!
Rhrosty

Good article

The problem about the underlying causes of debt not being addressed is important, and Michael is right that these crises will recur periodically until they are addressed, whatever the political allegiances of the Government at the time.

I agree that many of the provisions are sensible micro-economic reforms, but opponents of austerity will object to the budget and pension provisions, arguing they will prolong Greece’s economic contraction

As Margaret Thatcher said, socalism is fine until you run out of other
people's money.

However, it seems the rules may have changed, others just keep on
giving you more money !

Growth will only now be possible by using other peoples growth.
Thats what other peoples money will do for Greece.
What is going on now with Greece is based on the old rules which now no
longer apply. World growth is declining and will at sometime reach zero.
Greece by that time will be well and truly in negative territory.
If the IMF, which today has attacked the EU over the argeement it made
with Greece may apply a Bail-In on the Greek banks and mop up the
populations deposits. The IMF will have to do that before the banks
reopen as I suspect there will be a run on the Greek banks.
I know I would.

As I write this, the Greek parliament is a couple of hours away from a decision. Some Syriza politicians have resigned in protest against the EU creditor deal - stupidly IMO, as they are forfeiting their invaluable NO vote.

From some accounts, the Greeks are taking to the streets with a riot agenda to demand another NO (for what it's worth). Let's hope they do another Venezuela coup 2002.

No one is listening anymore to economic theory. There is no economic right or wrong here - only politics. Syriza is (aaaaaah!! oh-my-god!!) left-wing, so it has to be crushed in order to keep the world safe from equal distribution of wealth - a fate worse than death for the powers that be. (Let's face it. The EU 'stoney-heart' creditors would have made all kinds of debt-relief concessions by now, had they been dealing with a right-wing Greek parliament.)

My biggest concern here, of course, is whether, after all this is over, will Greece still be able to continue its out-of-control military spending while blaming all its woes on pensioners and public servants? As France and Germany are their principal suppliers, I'm pretty sure they will.