Let us not forget that such further measures to ensure a reduction of Greek public debt were, back in November 2012, made conditional to, and meant as a reward for, fiscal adjustment. This adjustment is now a reality. Reaching a new agreement with our partners may be a necessary condition for the recovery to take root and gain traction.
The subsidy inherent in the safety net would assure that result, extending the spread of the safety net and requiring that the Federal Reserve’s authority and ability to meet its responsibilities be shifted to a different paradigm. Such a result is reason enough for our concern about the spreading of the safety net subsidy.