Christine Lagarde finance ministers meeting Wiktor Dabkowski/ZumaPress

How the IMF Failed Greece

Throughout their country’s debt crisis, Greeks have been presented with two stark choices: Stay in the eurozone, implement austerity, and receive financing, or leave the monetary union and attempt to survive on their own. In reality, Greece should have been offered a third choice, but the IMF refused to put it on the table.

NEW DELHI – Democracy is about real choices. But, throughout their country’s crisis, the Greek people have been deprived of them. For this, the Europe Union and especially the International Monetary Fund bear considerable responsibility.

Greece was offered two stark choices: Leave the eurozone without financing, or remain and receive support at the price of further austerity. But Greece should have been offered a third option: Leave the euro, but with generous financing.

This option should have been put on the table, recognizing that Greece has broader political reasons for staying within the eurozone. Although exiting the monetary union would have yielded considerable benefits, “Grexit” would have entailed sizeable costs as well.

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