Wither Greece?

2₵Debt relief and more loan guarantees, from anywhere, are not going to solve the Greek or Spanish issues. The only relief for the people as well as for greater Europe is jobs, wages, salaries and disposable income. Europe must revitalize the non-existent economies of their sickest members.The Greek government hasn’t the financial power to create the kinds of infrastructure programs required, but the rest of the budding Federal European Union does. They must keep the Greek government out of the programs as much as possible because of its history of corruption and its demonstrated incompetence is handling fiscal requirements. Think of a Greater InterEuropean Highway system fully funded, controlled and managed in Brussels using Greek labor and contractors along with projects to modernize port facilities, water conservation and dam facilities, hospitals, schools, etc. within Greece. Billions of over 5 years or less.The Greek government must be lead to end the internal corruption culture as well as institute strict tax recovery tactics aggressively pursuing and punishing tax evasions and capital flight. Extended debt repayment terms stretching into decades, not forgiveness, are also required.The Eurozone Monetary Union was set up as a first step to a full political Federal European Union. The Germans and the French, the biggest proponents of such a union, are now in a position take the next step and demonstrate to the rest of the EU members what such a Federal Union can accomplish for the good of the states within such a union.Right now Deutsche Bank and Chancellor Merkel are strangling both Greece and the hope of a Federal Republic of Europe with the same hand.Edited by AZPaul3, : some changes here, some changes there

Oh, even among nation-states there can be very effective ways to cajole action. Right now all that has been tried is threat.You want this multi-billion euro infrastructure investment? We'll also extend your loan installments over the next 30 years. Good?In exchange we will fund and run the infrastructure projects from here, not there and you gotta get your shit together and clean house. Deal?Of course, more diplomatically presented would make the prospect of Greece getting up off its knees with breathing room and some hope for a better future than looms before them today seem just that much more attractive.But you are right. If the Europeans want to be stupid and the Greeks want to be stupid they can flip the bird at each other and watch each other's dreams, and nations, flounder. Edited by AZPaul3, : cuz

My understanding is that part of the deal is that the Greek government will sell off 50bn in state-owned assets to start an asset fund controlled by Athens with heavy supervision from Brussels. 25bn is to go to Greek banks for lower interest-rate loans to the private sector spurring investment and inventories, 12.5bn will go to infrastructure projects within Greece to generate employment and income streams and rest will be used to make payments on present loans.It's a start, at least, even if a rather minimal one.