Greece has many problems, but the foremost concern is how to fund it for the next few months. The country is trapped in a depressionary debt spiral, so that the more it cuts back the more it owes.
The only way to break the spiral is to forgive enough of the debt so that the remainder may be sustainably serviced by its crippled economy. Greece is a small country, and the amount needed to place it on the right track are rounding errors compared to the numbers emanating from Spain.
From tradingeconomics.com, Greece currently has a debt ratio of 170% of its €235bn economy. That’s a total debt of about €400bn.
The troika needs to make a grand bargain with Greece. In exchange for reforms, the EU, ECB and IMF need to knock off half of the total debt to bring the ratio down to a manageable 85%. Anything less means that Greece will eventually default.
The current ratio is unsustainable. All the current proposals do is kick the proverbial can down the road while the Greeks suffer. Eventually, Greece and the troika will run out of road. By then, no amount of money will be able to fix the resultant Grexit crisis.