Policy Article

Good Times Back in Greece? (original publication German only)

The authors Klaus Schrader, David Benček and Claus-Friedrich Laaser answer the question whether the Greek economy is really doing well again and whether the country has actually progressed in the field of structural reforms as propagated by European policy makers. The result of their analysis is that Greece still lacks a new business model that could generate sustainable economic growth and that the reform process has to be significantly speeded up and professionalized. In the authors’ opinion a further haircut is inevitable but only with the qualification of a restricted Greek fiscal sovereignty and the omission of further bailout packages.