Maybe Greece's New Leftist Government Is Right To Write Down European Debt

Greece's leftists are right to insist on writing down European countries' debts. "Amid the populist rhetoric that propelled the far-left Syriza party to victory in Greece's parliamentary elections, there's one idea that Germany in particular should take to heart: revive growth in the euro area by giving the hardest-hit countries a break on their debts. ... Enforced hardship isn't improving the countries' ability to pay their debts or helping the European Union's economic prospects. Slow growth has eroded the fiscal benefits of austerity. Despite spending cuts and tax increases, Greece, Italy, Portugal, Spain and even France will be unable to get their ratios of debt to gross domestic product down to the euro area's permitted maximum of 60 percent in the foreseeable future."Bloomberg View