Can Europe Overcome The Crisis? – OpEd

By Nawab Khan

Leaders of the 27-member European Union last Thursday agreed to a second bailout for Greece estimated to be around 120 billion euro.

The move is seen as a desperate attempt by the EU to save Greece from bankruptcy.

Last year, the EU and the International Monetary Fund (IMF) decided to give Greece a financial assistance package of 110 billion euro, but the economic situation in the Mediterranean country continues to deteriorate.

The new financial help depends on the Greek parliament adopting next week a harsher five-year austerity program that is bound to increase discontent and social unrest in the country.

EU leaders argue that without further support, Greece will have to default with all the negative consequences for the country and Europe as a whole.

Analysts, however, say that giving more money to Greece is like prescribing stronger medicine for a severely-ill patient without considering whether the treatment will cure or exacerbate his or her condition.

The media and think-tanks in Europe continue to be pessimistic about the chances of an economic recovery in Greece, while a feeling of helplessness and despondency hovers over the EU capital Brussels.

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