In their paper the Kiel Institute’s researchers Klaus Schrader, David Benček and Claus-Friedrich Laaser analyse the tense economic situation and the insufficient reform policy in crisis-ridden Greece. They argue that Greece’s public debt is no longer sustainable and make proposals how to overcome the debt crisis. The authors emphasize that in Greece structural reforms are indispensable by all means and that the creditors should support the reform process more actively. The permanent break of rules by the Greek policy should no longer be tolerated to safeguard the proper functioning of the Euro area and the European Union as a whole. They advise against a rescue of Greece without strict requirements for further reforms to prevent the creation of a transfer mechanism and disincentives in other crisis countries.