‘Default Would Be Best Scenario For Greece’ – 21 April 2015

RT logoGiven the remaining differences in the approach to the bailout between the Greek government and the Troika, a default would be the best thing for the Greek people, Marco Pietropoli, London-based economist, told RT.

RT:Do you think both sides of the dispute, the Greek government and the Troika, will come to an agreement on Greek debt, considering the fact that their approaches differ a lot?

Marco Pietropoli: “No”– is the short answer. I think that they are both starting from extremely different positions. The new Greek government was elected on a mandate to end the painful austerity imposed by the Troika: the IMF, the European Central Bank [ECB], and the EU, and to change the situation for the Greek people which in practice meant either a substantial renegotiation of the terms, or a default on the debt. These are very, very different opposing situations because the Troika effectively is saying: “Well, the previous Greek government signed up to the terms of these bailouts, and the terms of these bailouts should be maintained.” They are sort of suggesting that they will be slightly flexible on the terms but not completely redesigning the bailout. Because there is such difference with the approach I don’t think that a negotiated assessment is possible. My view is…that the best thing for the Greek people is to default on their debts, and that is probably the way it is likely to go.

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