WHITHER GOES GREECE?

I wonder whether the Brussels meeting of 17 European nations could find a way out to solve the economic chaos and bring about relief to the recession hit Europe particularly Greece. Thus believe these European nations who gathered at Brussels and after marathon talks arrived at a solution. It is true that soon after chalking out the solution European markets soared by five percent which had its reflection across the nations. But how long? Whether the trend is going to persist or after the euphoria settles down whether it will be back to square one.
The marathon talks which lasted into the early hours of last thursday discussed and deliberated upon the crisis and finally emerged out with a three pronged solution. First, to wipe out 50 percent of Greek debt second, to recapitalize the banks third, to strengthen European Financial Stability Facility (EFSF).
100 billion Euros will be pumped to rescue Greece to rescue it from giant debt thus helping to reduce the GDP from 180 to 120 percent.
Certain well-known economists nurse doubts and apprehensions as to how the bailing out of banks by imposing austerity measures could solve rather than aggravate the situation.
European nations met at Brussels and after much hair-splitting finally arrived at a solution as the last resort. If the last resort goes awry then no escape, they are well aware of.
A distinguished economist and Nobel laureate based in US keeps this apprehension that whichever nation that imposes more and more austerity measures thus putting a heavy burden on people bailing out banks is likely to fail ultimately. For instance he points towards certain examples like Iceland which allowed the banks go bust and concentrated on widening the social safety net. Such a step had its salutary effect in Iceland. On the contrary imposing more austerity measures for bailing out banks will find it very difficult to wriggle out of the situation in due course.
Greece under George Pappandreau is in turmoil as it is forced to follow the conditions slapped on it by IMF, European Central Bank and European nations. Five 48 hour strikes already witnessed by Greece including students and teachers, schools and colleges, transport services, post offices, railways, hospitals, doctors and staff etc to protest against austerity measures making their life a burden. Instead of that if Greece like Iceland were to concentrate on widening social safety net today’s problems could be solved. But no, Greece is determined to perish. Let us keep solidarity with the hapless citizens of Greece.