It took months for the Greek Government to realise that, in light of the new data on the budget deficit, it had to backtrack from its election promises and reverse its budgetary policy by 180 degrees.
It took time for the other euro area governments to realise that a support package was needed to ensure the credibility of the adjustment in the eyes of financial markets. While democracies need time to take decisions, financial markets act quickly, accelerating their position-taking at any sign of indecision by the policy authorities.