Germany has been trying to promote the idea of a orderly insolvency regime for euro zone members without success. Oddly,deeply indebted countries prefer bailouts to insolvency
Here are the details from a widely discussed article in Der Spiegel.
The bottom line?
The Greek prime minister is full of good intentions, but his measures have been relatively ineffective so far. Although the government is raising taxes and even introducing new taxes, revenues have fallen short of expectations. Strikes, like the one that was staged last Thursday, are constantly paralyzing public life and the economy.In other words, it is quite possible that Greece will not fulfill the conditions and thus will receive no aid from the European fund. This could lead to a consequence that European leaders have been trying to prevent at all costs: a total national bankruptcy. And, if the reform package has not been implemented by then, it could end up being anything but an orderly process.
