Where does Greece go from here?
I see that the Greek government has approved the new austerity package, naturally greeted by Greece taking one more step to the total breakdown of social order. This does solve the near-term problem of Greece potentially defaulting in March, but I don’t really see what medium-term and long-term problem it solves. Greece’s deficit is not going anywhere soon, obviously.
More importantly, it seems like the institutions of democracy there are in genuine peril over the next few years. The current government was more or less installed by bankers, of course, and whenever elections happen the opposition will take over. With the bankers calling the shots, I have a hard time seeing how the (incredibly unpopular) austerity policies will change under a new government. And in turn, how does that government survive?
The Greek polity does not want the policies that are being forced on it by its creditors, and there’s only so long this basic fact can be deferred. The relevant consideration for Greece and the Eurozone is whether it can be held off long enough to bring its fiscal situation into balance. I doubt it, personally.