The dust appears to be settling now on the latest round of the Greek crisis. Nobody, however, should think the matter has been resolved once and for all. That will only happen when one of two things occurs: either Greece leaves the Euro or there is a massive write-off of Greek debt.
The latest bail out deal for Greece requires the country to implement ever harsher austerity measures. For example, the Eurozone has insisted Greece increase Corporation Tax rates on business and, even more crazily, to increase VAT rates on the Greek tourist industry. How is Greece to emerge from this economic nightmare if business cannot invest due to ever higher tax rates, and the only industry that is still properly functioning in Greece – tourism – is made uncompetitive against other countries?
Whilst this economic madness continues, the Greek crisis will never end. Once this bail out deal cash has been spent, Greece will not be able to service its debt again and this whole sorry episode will be repeated. We may be a couple of years away from that again, but for sure it is going to happen.