Carrot, not just stick
If the government does finally manage to reach an agreement with the country’s international creditors, then they, in turn, have an obligation to move ahead with a restructuring of the country’s debt.
They had promised the previous government of Antonis Samaras to do so in exchange for Greece achieving a primary surplus. When that happened they went back on their word.
It is a simple fact that it will be easier for Greece to implement more painful and unpopular reforms if there is a strong motivation.
Sure, Greece has already been granted smaller installments and lower interest rates for repaying its debts in the next few years, but a further reduction of the massive debt load would not only help the country get back on its feet but would also provide a much-needed injection of optimism into the wheezing economy.
