Deflation could stall efforts to revive Greece

Katinka Barysch, of the CER, said that that realization had hit home in Germany. "It might be unpopular for the Germans and Europeans to bail out Greece, but it will be even more unpopular for them to bail out the banks that owned Greek bonds… If growth stays negative or low in Greece, the fiscal debt will continue to increase, whatever they do," Ms Barysch said, while difficult structural reforms to liberalise the economy will take time. The economists she speaks to "don't really see a solution for Greece in the longer run," she said. …Greece is functionally bankrupt, Ms Barysch said. "For most European officials and experts, it's not about fostering Greek growth, it's about the stability of the eurozone."