Panagiotis Kouroumblis – Exactly Correct in his No Vote

“I cannot accept this raw blackmail that comes from the EU. After we sell our state assets for a song, can they assure us that we will we avoid bankruptcy?” he said.

I believe Kouroumblis has covered all of the issues concerning the Greek austerity measures in one sentence.

Can they assure us that we will avoid bankruptcy – that is the critical question and of course the answer is no, which means all these auterity measures will destroy the Greek economy for nothing.

Numerous economists have stated that default for Greece is inevitable. Indeed the BBC on the 30th stated numerous times and interviewed a selection of economists who said default was Greece would be inevtiable.

The most important point was that is was an orderly default so that damage to European banks could be reduced and managed.

It is crystal clear that the Greek bailout is not done to help the Greek people but to help the banks

The following people and organistions have said default is inevitable

Claude Barfield
“I have great admiration for Mrs. Lagarde personally, she’s had a distinguished career, [but] I think we have complicated matters by placing a European at the head of the IMF at this crucial time,” he told RT. “In terms of Greece itself, it’s just putting a bandage on a problem that is a gashing wound and that sooner or later you are going to face some sort of default – however Europeans want to describe it – by the Greeks, because you are not going to have any growth or relief.

Robert Peston
Does not say default is inevitable but it is a very interesting article

Simon Tilford
In fact many economists fear Greece has already entered a “debt trap,” where paying the interest on its mound of debt requires more and more loans. “The Greeks have been told to accept more of the medicine that has already failed to treat the disease,” said Simon Tilford, chief economist at the Center for European Reform in London.

Nick Skrekas
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Megane Green

Reuters

Going back to the original point, the basis for Papanderou’s actions seems to be “we are building for the future” with these Austerity measures.

Given that many economists believe default is inevitable it is hard to buy into Papandreou’s vision. And given the decline of the Greek economy you would have to say Papandreou’s measures will take Greece to the brink, bankrupt the people and then default. The absolute worse case scenario