"But in substance, Mr Tsipras’ plan relies far more heavily on raising taxes — and not cutting spending — than bailout monitors had suggested. In a country that has a spotty record in collecting taxes, that has raised concern among some of the creditors, as has the potential recessionary effect high new taxes could have on the economy." Financial Times, Deal or No Deal
"Greece will not honor these obligations any more than it has its prior ones during the past decade. It may privatize a few assets, and it may even pretend to cut pensions. There is practically zero chance it can achieve the primary surplus targets it has accepted because its economy is not going to be able to grow quickly enough. (and few will be, thanks to the quackonomics of the ruling class). We will be back at this charade six months from now, more or less, and then again later. The Greek goal is most likely to extend and pretend until the political landscape changes in Europe, as it will eventually. What is much less clear is what the ultimate resolution might come to resemble. The EU is not sustainable as it is. I have no idea what is going to cause the Very Serious People to come to that realization and what will remain after they cannot kick the can any further. (It is not clear to me how many unstable financial systems and their supporting kleptocracies will be resolved as well.) As you have noted, the game is just beginning in Greece. I am not even sure I would say 'game on' yet. Some hard times are going to be visited upon the various countries of Europe. I strongly suspect, however, that since the technocrats in Brussels and the troika have been tone deaf in overriding the will of the people and their elected governments in the weaker periphery countries, it will come back to haunt them. The end result is likely to be the exact opposite of what they seek to ensure. Instead of greater economic, fiscal, and political integration (with power concentrated in Brussels and Bonn), they are likely to revive stronger anti-EU nationalism in the periphery, as this will be the only means the weaker nations will have of effectively fighting the stronger nations. When enough nations in the periphery see the light, the EU will no longer be able to continue in its current form. I am curious to see how this process will play out." Pnev̱mató̱di̱s Diki̱górou
