[simonh]

It's more that just about Greece's debts, it's about Greece's persistent refusal to live within it's means. Other EU countries have higher debt to GDP ratios than Greece, but they reformed their economies, increased government revenues and reduced spending to make those debts sustainable. Greece has not. They were supposed to sell of 50 Bn Euros of state assets, 5 years later they've sold less that 3 Bn worth. They've persistently dragged their feet over even basic sensible reforms. It didn't have to be this way, under Giorgos Papakonstantinou Greece was well on it's way to financial reform.

Note that the Greek banks are dying not because the ECB has stopped lending to them, it's because it has stopped automatically ramping up the amount of it's lending. Even just freezing emergency lending on a daly basis is bringing the country to it's knees. What Greece wants is for the other EU nations to forgive past debts while also continuing to keep on lending to them with no end in sight. This is why the creditor countries are getting so frustrated negotiating with Greece.

Other nations went through tough times, got their finances in order and are now paying off their debts sustainably. Greece has chosen not do that. It's inability to pay off it's debts is a choice they have made.