Wall Street Journal
September 21, 2011
Greek Finance Minister Evangelos Venizelos raised only one side of the problem facing Greece when warning Wednesday that the country must tax and cut more to avoid disqualification from further aid and the economic collapse that would follow.
The flip side is that still more taxes and cutbacks equally risk economic disintegration, and very likely a political crisis that would topple the government and with it the country’s deal with the European Union, European Central Bank and International Monetary Fund “troika.”
In sum, Greece’s choices are both dire. Each could result in default and departure from the euro zone.
The IMF forecasts that Greece will remain in recession for a fourth year in 2012 with unemployment creeping higher, steepening the hill the government has to climb to cover budget gaps.
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