Even the IMF has now admitted that austerity hasn’t worked and that Greece is simply incapable of paying any significant portion of its $340bn debts. The Greek economy has collapsed by around 30% as a direct result of five years of cuts and deflation. Yet Greece’s debt has risen from 130% of GDP in 2010 to 185% of GDP as a result.

It is economic madness. The only way for the Greek economy to recover is for the burden of debt to be lifted or rescheduled in such a way that the debt repayments do not hinder future growth. With a shrinking economy, the debts only get larger.

Even the IMF has now admitted that austerity hasn’t worked and that Greece is simply incapable of paying any significant portion of its $340bn debts. The Greek economy has collapsed by around 30% as a direct result of five years of cuts and deflation. Yet Greece’s debt has risen from 130% of GDP in 2010 to 185% of GDP as a result.

It is economic madness. The only way for the Greek economy to recover is for the burden of debt to be lifted or rescheduled in such a way that the debt repayments do not hinder future growth. With a shrinking economy, the debts only get larger.