- Greece is still unable to pay off its debt
- Forcing it to do so would backfire, causing a default and fostering populism
- Cancelling the debt would make the most economic sense, but …
- The EU would be criticized for bailing out Greece merely to avoid Grexit
The Greek bailout saga that began in 2010 is due to come to an end in August. In theory, this means that international organizations – primarily the European Union – will disburse no further resources to sustain the Greek economy and its public finances. Instead, Greece will have to start thinking about how to reimburse its foreign debt, some 320 billion euros of which consist of the funds handed out by international creditors since the relief program took off.
However, most observers believe that Greece is unable to meet its creditors’ requests even though some structural reforms have been implemented and the economy is no longer in tatters.