There's Magic in Greece, but Not a Solution

The new Greek government recently sent waves of concern through eurozone capitals. As promised in the election campaign, the new prime minister in Athens, Alex Tsipras, told Europe that Greece needs to write down its debt, take a so-called haircut. One cannot say that the message was a surprise, but when people are faced with reality it often comes harder than expected. This is particularly the case concerning macroeconomics and the financial markets, and the new Greek government confirmed this.