Next Steps for Greeks after the Austerity Bill (AKA: Hope for Greece, at last)
Ok, another austerity package just passed. That’s the bad news, but amidst the bad news there is some good news. More than 40 MPs were expelled from the PASOK and ND parties, two from LAOS—those MPs need to form a new, explicitly anti-austerity, pro-default government. Odds are good they will win the next election, and can form the new government.
No deals made by a sovereign are unrevocable. Whatever this government is doing, has done and will do, can be undone by a new government.
Oh, and Greek rioters – if you’re going to riot and burn, burn down the houses of the MPs and bankers, the banks and their offices (I see some of the right places did get firebombed.)
Greece can be fixed, if the Greeks are willing to do what it takes, both in terms of electing a new government and that government doing the right things. Those things will be unorthodox and painful, but no more painful than austerity, and unlike austerity, they will lead to a better economy, and based on experience elsewhere, probably within two or three years of doing the right thing, with some relief being felt within 6 months.