To work, this approach needs much more than the understanding and support of the Troika. Critically, it also requires that Greece take more convincing holistic steps to overcome the self-reinforcing problems of way too little growth, too much debt (including among the banks), and citizens’ only lukewarm confidence in a political elite that has consistently let them down.
Greek citizens are right to expect greater reassurances that their sacrifices come with real prospects for a gradually brightening light at the end of what already seems like a very long tunnel. This will only happen if the country decisively overcomes the persistent implosion of its economy and, simultaneously, attracts new inflows of private capital for investment in production engines, competitive enhancers and job creators.
Neither of these conditions stands much chance of being met any time soon.
To perceive a real glimmer of hope, citizens need a fresh bold approach that goes beyond promising more of the same, just for longer. For their part, new private investors look for better indications that Greece is finally able to pivot from a disappointing economic past to a better future, including by removing through another debt rescheduling an overhang that persists despite what was already the largest restructuring in history of sovereign liabilities.
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