Top economist slams Greek handling of bailout showdown
WASHINGTON (AFP) -
Nobel prize winning financial expert Paul Krugman, a vocal supporter of Athens in their long-running bailout adventure, said Sunday that he "may have overestimated the capability of the Greek government."
The radical government has consented to raise assessments, update its sickly annuity framework and focus on privatizations it had beforehand restricted in return for a worldwide bailout of up to 86 billion euros ($94 billion) throughout the following three years.
The draconian assention - acknowledged by a gathering that came to power in January promising to end somberness - came after more than 61 percent of Greeks on July 5 rejected further cuts in a choice called by Prime Minister Alexis Tsipras.
Krugman recommended that the decision radical Syriza gathering arranged the standoff without having a Plan B - "in any event something they could hold up, 'this is the thing that we will do on the off chance that we can't get any new money.'"
"Amazingly," Krugman said on "CNN's Fareed Zakaria GPS," "they thought they could basically request better terms without having any reinforcement arrangement.
"So surely this is a stun."
The New York Times writer has demanded over and over that five years of emergency in Greece have demonstrated that tenacious spending cuts - the universal recipe for Greece and other eurozone nations that got bailouts - don't spare an economy in subsidence, but instead make it more diseased.
After the choice, the Greek government acknowledged considerably harder terms from the troika of Greece's loan bosses - the European Commission, European Central Bank and International Monetary Fund.
"So I, you know, I may have overestimated the fitness of the Greek government," included Krugman, who had asked Greeks to stand up and vote "no" to harder severity in the submission.
Nobel prize winning financial expert Paul Krugman, a vocal supporter of Athens in their long-running bailout adventure, said Sunday that he "may have overestimated the capability of the Greek government."
The radical government has consented to raise assessments, update its sickly annuity framework and focus on privatizations it had beforehand restricted in return for a worldwide bailout of up to 86 billion euros ($94 billion) throughout the following three years.
The draconian assention - acknowledged by a gathering that came to power in January promising to end somberness - came after more than 61 percent of Greeks on July 5 rejected further cuts in a choice called by Prime Minister Alexis Tsipras.
Krugman recommended that the decision radical Syriza gathering arranged the standoff without having a Plan B - "in any event something they could hold up, 'this is the thing that we will do on the off chance that we can't get any new money.'"
"Amazingly," Krugman said on "CNN's Fareed Zakaria GPS," "they thought they could basically request better terms without having any reinforcement arrangement.
"So surely this is a stun."
The New York Times writer has demanded over and over that five years of emergency in Greece have demonstrated that tenacious spending cuts - the universal recipe for Greece and other eurozone nations that got bailouts - don't spare an economy in subsidence, but instead make it more diseased.
After the choice, the Greek government acknowledged considerably harder terms from the troika of Greece's loan bosses - the European Commission, European Central Bank and International Monetary Fund.
"So I, you know, I may have overestimated the fitness of the Greek government," included Krugman, who had asked Greeks to stand up and vote "no" to harder severity in the submission.
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