The problem is that the EU nations and the ECB loaned to Greece (practically from the first time Greece adopted the euro) knowing full well that it would be unable to pay them back under the given conditions.
At this point, Greece really has no other feasible option but to repudiate their debt. This will cut off their access to further credit, but is that really a bad thing?
“At this point, Greece really has no other feasible option but to repudiate their debt. This will cut off their access to further credit, but is that really a bad thing?”
Therein I think is why the right wing is embracing it. It’s obvious to any rational observer that they simply can’t service the debt. Once they repudiate the debt, they’re locked out of capital markets for about 5 years. Contrary to popular myth, they won’t be locked out forever. During that 5 years they’ll have to either balance their budget or run a surplus. Instant balanced budget anyone?
This is very analagous to the strategy in a corporate or personal bankruptcy where you try to keep your creditors at bay while preserving as many assets as possible.