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Klaus Adam

If You Want to Save Greece, Stop Lending It Money

The Greek rescue program is seriously derailed. By the end of this year, the economy will be a fifth smaller than it was five years ago, and the government is another 4.5 percent decline in 2013. This figure may once again prove overly optimistic.

The collapse helps to explain the high involved this week, as the Greek government tries to drive through parliament a double dose of austerity in the teeth of recession, and the country’s international creditors worry over whether to give the country its next 31 billion euros ($40 billion) of life support, rather than let it default on debt repayments later this month and crash out of the euro.