One-Pager No. 17
November 01, 2011
Greece in the Aftermath of the Debt Haircut
More Austerity, a Deeper Slump, and the Surrender of National Sovereignty
It is a well-recognized fact that the Greek economy has been going from bad to worse since the first bailout in May 2010, and a leaked document relating to the bailout talks ahead of last week’s EU summit openly admitted that the policy of expansionary fiscal consolidation had been a blatant failure. So why did it take the EU leadership almost two years to recognize the need for a significant haircut on Greek debt?