LSE's European Institute Professor Paul De Grauwe argues in his personal blog (Are creditors pushing Greece deliberately into default?, 27.4.2015) that the austerity measures imposed on Greece since 2011 had devastating effects, including unemployment, poverty, and intense political instability. He maintains that not only is insistence on further austerity hardly reasonable, but that surprisingly EU ministers of finance “continue to hold the moral high ground and preach to the Greek that they should be more reasonable”, while even more surprisingly “most of the media have now accepted this story.”

De Grauwe underlines that the ECB is carrying a great responsibility: "By providing liquidity it could unlock the stranglehold the Greek government is kept in. Refusing to provide liquidity would make the ECB the single most important actor responsible for a Greek default and a possible Grexit."

Professor De Grauwe's recent articles on the Euro-crisis: Social Europe; Centre for European Policy Studies