The authors analyze Greece’s present business model and its deficiencies as well as the sustainability of the Greek debt burden. They conclude that the reform process is a necessary condition for structural change and economic recovery. Its completion and the promotion of private investment would accelerate the reconstruction of the Greek economy significantly. In addition, a strongly conditioned haircut or a phasing out of the Greek debt burden is inevitable to render Greece’s public debt sustainable and to end the ongoing bail-out process. The authors recommend discontinuing additional financial assistance to Greece in return and restoring its status as an ordinary member of the EU and the Euro-Group. The country would have full access to existing stabilization mechanisms but at the same time would have to observe the rules of the stability and growth pact and to accept EU economic policy coordination.