Is Greek public debt unsustainable? | Bruegel

Is Greek public debt unsustainable? | Bruegel

Greek public debt does not look sustainable if the country has to return to market borrowing at the end of the third bail-out programme, but could be sustainable if preferential ESM funding continues in the long-term. Our advice is to offer hope for Greece in the form of delayed fiscal adjustment toward a target of 2.5% of GDP primary balance and adopt various measures to ease the debt burden, for the benefit of both Greece and its official lenders.

 ZSOLT DARVAS AND PIA HÜTTL