The problem is that many banks gave Greece loans for many years and at very low interest rates in exactly this scenario.
And then Greece attempted to make the structural changes you described only having reduced expenditure to $100k per year they ended up reducing income to $60k per year and so actually increased the amount they owed as a proportion of their income.
Further structural changes along the lines of those demanded (leave business and rich people alone - tax the poor) would just make the situation worse.
And so we have a choice,
- restructure (this happens all the time in business even for businesses with outgoings higher than incomings - the long term potential for growth is what matters).
- force Greece out of EU
Kicking the can down the road only postpones the inevitable choice between these two options.
And then Greece attempted to make the structural changes you described only having reduced expenditure to $100k per year they ended up reducing income to $60k per year and so actually increased the amount they owed as a proportion of their income.
Further structural changes along the lines of those demanded (leave business and rich people alone - tax the poor) would just make the situation worse.
And so we have a choice, - restructure (this happens all the time in business even for businesses with outgoings higher than incomings - the long term potential for growth is what matters). - force Greece out of EU
Kicking the can down the road only postpones the inevitable choice between these two options.