Greece Must Demonstrate Quick Progress

Before a deal was even struck, naysayers from Greece, to the European Union and elsewhere were sounding the death knell for a rescue package.

Surely this is a very tough deal. Its unpopularity has led some experts to continue to argue for Greece abandoning the euro. With the exception of the left- and right-most leaning members of the Greek political system, few of these proponents live in Greece. Polls regularly show that 65 to 70 percent of the population supports remaining in the euro zone.

The devaluation entailed in a new currency means at least halving per-capita GDP. Greece would need 7-percent average annual growth over the next 10 years just to get back to today’s level of economic output. However harsh the latest austerity measures are, they are not the equivalent of an economic atom bomb.