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In reply to the discussion: Germans warns Greece: no cuts, no aid [View all]hack89
(39,171 posts)they let their domestic banks collapse instead of a government rescue. They also had to implement austerity measures.
What does this have to do with Greece? Their problem is completely different - they have too much debt and are on the verge of bankruptcy. Iceland never had a sovereign debt problem - their debt ratio was much lower and they had enough funds on hand to service their debt. And Iceland implemented
So what lessons can Greece get from Iceland that helps them in their particular problem. Do they implement austerity measures like Iceland? Do they raise taxes like Iceland? Cut pension benefits like Iceland? Cut people's pay like Iceland?
Iceland did a great job handling the crisis and setting things straight. But the people suffered and still suffer to this day.
And another key difference is that the Icelandic government moved swiftly and openly to deal with the issue. Greece doesn't even have a government now - it is not certain the election winners have enough partners to form a government. Greek government is going to be weak and fragmented for a long time so where is the firm leadership going to come from?