Breaking the cycle

COMMENT

It is a huge development that Greece managed to achieve such a high budget surplus, and especially in light of the economic pressures it continues to find itself under to this day.

That said, it needs to be noted that this over-performance was achieved thanks to overtaxation, to measures for cutting costs and to slashed expenditures.

This is a situation that is not sustainable in the long term because it leads to the complete asphyxiation of the economy.

What is needed now is a new deal between Athens, the country’s partners and its creditors, which, among other things, lowers the surplus targets in coming years. At the same time, the government needs to make a commitment to stop trying to cement its influence by offering handouts and positions.

Greece is trapped in a vicious cycle that has been caused by an absence of trust throughout the crisis, and this cycle must now be broken.

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