The end of the Greek debt crisis? (in German)

Thanks to an indirect hair cut on its debt via low long-term fixed interest rates and maturity extensions Greece has been given the opportunity to secure its access to capital markets without the prohibitive burden of its debt. The authors emphasize that medium- and long-term debt sustainability depends on markets’ assessment whether Greek policy makers will develop ownership with regard to the reform process and stability-oriented fiscal policy. By a continuation of these policies Greece could achieve the steeper growth path needed to generate the projected primary surpluses and outgrow its debt. The authors recommend that European partners should not blur market signals by a latent willingness for another bail out which could undermine Greek ownership of the completion of the rescue.