What Happens if Greece Doesn’t Get a Bailout?

Is a second bailout the solution to Greece’s economic crisis? Not necessarily, according to this article by Michael Shuman. Arguably, with a problem this severe and long-lasting, it will take more than one dramatic change to get Greece’s economy healthy again. Not only is the country in trouble, but it could possibly have a spiral effect on the rest of Europe, “defended not only the freedom of our own country, but the freedom of Europe.”

Business & Money

After the Greek Parliament on Sunday passed yet another package of austerity measures demanded by its euro-zone neighbors — this one worth $4.4 billion — the path seemed clear to finalizing a long-delayed, second bailout of the country totaling $170 billion. Well, it turns out the Greek vote wasn’t enough to satisfy skeptical euro-zone leaders. Instead of pinning down the bailout details, European finance ministries have reopened the entire plan to bail out Greece. A debate is now raging among euro-zone countries over whether or not a second bailout makes any sense at all. The basic problem apparently is that there is a growing belief in some northern euro members — such as Germany and Finland — that Greece’s politicians will never be capable of implementing reforms, whatever promises are made now, so a new bailout would end up being a waste of money. German Finance Minister Wolfgang Schäuble publicly questioned the commitment of…

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