“How can the Spanish or Italian prime minister tell voters that Greece has a lower interest burden than we have, but we still need to give them debt forgiveness?” said Mr Darvas.
That is from Ferdinando Giugliano at the FT, who is referring to the possibility that the Greek debt load might be sustainable. Don’t focus on the debt to gdp ratio of 175 percent, consider that the interest rates are low and the term structure of the debt is long. Here is your Greece fact of the day:
Mr Darvas calculates that total interest expenditure in 2014 [for Greece] was 2.6 per cent, only marginally above France’s 2.2 per cent.
Yet I do not find the Greek position to be sustainable. As has been the case from the beginning, the real problem in the eurozone is in the politics, not the raw numbers of the economics. It is worth noting that there are Maoist and Trotskyite factions in Syriza, so if we are going to moralize about the National Front in France, or other disreputable groups, let’s be a little more consistent here…