The "right track" for Greece and the Troika's grave errors

This is the (updated) translation of an article that was issued February 26, 2015 on flassbeck-economics. We intend to publish one article in English every week to allow more readers to follow closely our analysis of global and European events.

Now that the Greek government announced its plans on how to proceed with the reform process, it is time to think through what exactly is happening within the euro zone and what needs to be done to make the European economy work. In reality, the New Greek government’s policies for the next four months, which have been approved by the Euro group, are not very important to the future of the euro zone. Greece did win a small victory, as it is not explicitly forced to continue with the extremely restrictive fiscal policies of previous years. I suspect that this is due to the mediation by the Commission, which, now that it is led by Jean-Claude Juncker, assumes a very different role than in the past. The real test for the Greek government is due in four months. By then, they need to prove that their new policies are working according to criteria that have been agreed by the Troika.