Against the Tide: Government deficits and debt – Greek myths

Greece has a tough road ahead of it to restore economic health and credibility. But those who believe it will default, leave the eurozone or abandon the EU are living in a fantasy world.

Greece will suffer,
it will squirm, it will squeal
and it might fail to do what is demanded of it.
But it will not default


Markets are pricing Greek sovereign debt as though the government will default, or will be forced to leave the eurozone, or be expelled from it. But none of those things will happen. Whatever difficulties the Greeks have in getting their huge budget deficit down to acceptable levels, the country won’t leave the euro or be expelled and it won’t default.

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