Costly fantasies

Analysts who warned that the Greek economy was in danger of entering a fresh period of decline have been proved right.

Being completely out of touch with the real economy, the country’s leftist-led coalition deemed it could keep raising taxes forever and get away with it. At the same time, it halted payments by the state to third parties in the name of yet another purportedly bold negotiation strategy.

Reality struck back hard against the government’s irresponsible fantasies on Monday as revised figures by the country’s statistics service showed the Greek economy contracted from October to December after two quarters of growth.

Despite all that, ruling officials prefer to put their ideological obsessions and partisan concerns before the common good. And so they keep delaying the completion of the second bailout review despite knowing the impact that this will have on the markets and the banks until May.