In a sentence, because the bailouts are funding an oppressive political regime. The bailouts allow the country to be run in a completely unsustainable way and this hurts anyone living in Greece
The unsustainability of Greece is not a new thing, it is not something that has appeared with the Euro.
Prior to the Euro the system, Greece was propped up by rampant inflation of around 20%. This allowed the Greek government to impose huge taxes & regulation and it also allowed the Greek government to fund massive bureaucracies to administer the taxes and regulations.
The Euro, due to the fact that is massively reduced the Greek central bank’s power to print money has brought the problem to the surface.
Before the unsustainability could be hidden through the theft of inflation, now the theft is more clear through the brutal taxation that has been imposed by the current and previous Greek governments.
Even the country as of 2007 was not sustainable. The Greek government was spending more than it took in and the country had a trade deficit of around 8% of GDP.
What has appended since the financial crisis is that the unsustainability has been made worse and not improved.
When the Greek government ran into financial difficulties due to their partner in crime the Greek central bank not being able to print them out of trouble, the Greek government did not address the fundamental causes of their problems which is the massive over-regulation of the economy, the mass bureaucracy that had to be funded to enforce the regulation and the high taxes and the structure of the tax system in general.
The Greek government under Papandreou simply amplified the same problems by increasing the taxes and the regulation in order to fund the bureaucracy.
The Greek people, like any people of any country in the world want their taxes to come down and for the regulations to be reduced.
A country can simply not sustain itself when the economy is so highly regulated and the taxes are so disproportionate to income. ( For example for the current government bailout of 31.5 billion Euros the Greek government has proposed as flat tax of one thousand Euros on all businesses regardless of their profit)
The only way the Greek government can be sustained with such hostile policies is if they are getting financing from outside. I would say it is akin to western governments propping up oppressive regimes in Africa but I do not know enough about this to comment, if you do please fell free to chime in.
The only way a government can get away with such brutal taxes and high regulation is if it receives outside help.
The people in Greece want this outside “help” to stop.
The people in Greece want this outside “help” to stop so it forces their government to cut the regulations and cut the taxes.
Supporting an oppressive regime like that in Greece allows the government in Greece to literally get away with murder if you consider the rising suicide rate a result of the increasing taxes and regulations.
The Greek regime will only reform if it is forced to and the only way it will be forced to is if their source of funding is cut out.
Only when Greece has a government that is pro small business and pro freedom will it become self-sufficient and free of control from foreign governments and foreign entities such as the Troika.
The IMF is just as guilty in this oppression as the Greek government. The Greek government publicly states to the IMF what its plans are. The IMF are fully aware that the Greek government pans to impose taxes which are completely unfair and completely unrelated to the income of the people who are expected to pay these taxes and yet they continue to give the Greek regime the greenlight by continuing to prop them up.
Only when the bailouts stop will the Greek government be forced to do what is right by the Greek people and this is low taxes, taxes connected to income and low regulation which will allow Greek companies to compete with other countries inside the EU.