it needs to restore its budget to health, implement a rigorous privatisation programme and carry out essential structural reforms. The proposals from the private sector and the decisions of the European governments, i.e. lowering interest rates and extending the duration of the loans, will ease Greece’s debt service burden considerably. Furthermore, the outstanding debt will decrease through bond swaps and debt buybacks.
But what is important is that Greece carries out the adjustment itself, helped by this very important decrease of the yearly service of the debt. After Brussels, will countries like Spain or Italy avoid the Greek contagion? Without exception, every country is aware that it is experiencing an exceptional crisis.