‘squeeze and hope’ strategy

Simon Wrenn-Lewis of Oxford Univ keeps a close eye on the EZ crisis and particularly on its Greek dimension.

Greek governments in the years before the recession

behaved very badly in both economic and political terms

As a result, when the recession hit, the Greek government’s finances became untenable 

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understandable why the Greek government did not want a complete default

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The Greek government’s position is no longer unsustainable because it is 

spending more than it is receiving in taxes. It is unsustainable 

because it cannot afford to pay the interest on its debts 

The whole piece is worth reading until mastered.