EU’s Greek Debt Austerity Plan Rejected by the IMF
ECONOMICS, 3 Aug 2015
Paul Craig Roberts – TRANSCEND Media Service
30 Jul 2025 – I have maintained since the so-called Greek Debt “crisis” began back in 2010, I believe it was, that the imposition of austerity on Greece could not possibly work and that the only solution was to write down the debt to a level that Greece could service and introduce reforms that loosen the hold the oligarchs have on the Greek economy. The current Greek government has taken the same position, and now the IMF has joined us.
The IMF has said that debt relief measures, that is, write-downs, are necessary and that this necessary measure goes
far beyond what the eurozone has offered so far. Asked if the plan could succeed without debt relief, the director of the IMF said, “categorically, no.”
This has been obvious from the beginning to any economist worthy of the name. The fact that it has taken five years to establish an elementary fact shows how rapacious are the rich. Moreover, it proves in my opinion that the “crisis” was never about debt. It was about using the debt as a weapon to establish that creditors are not responsible for their mistakes when they overlend, and to force the centralization of member states’ tax and spending policies in the EU.
The austerity plan does not address debt. It imposes a draconian fiscal policy on the Greek government.
________________________________
Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. His latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.
Go to Original – paulcraigroberts.org
DISCLAIMER: The statements, views and opinions expressed in pieces republished here are solely those of the authors and do not necessarily represent those of TMS. In accordance with title 17 U.S.C. section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. TMS has no affiliation whatsoever with the originator of this article nor is TMS endorsed or sponsored by the originator. “GO TO ORIGINAL” links are provided as a convenience to our readers and allow for verification of authenticity. However, as originating pages are often updated by their originating host sites, the versions posted may not match the versions our readers view when clicking the “GO TO ORIGINAL” links. This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission from the copyright owner.