So less than a week after the Greek people reject a creditor austerity package in a referendum, the Greek prime minister offers a more comprehensive austerity package on their behalf.
And most of the media expect the Syriza coalition in parliament to support the austerity package.
The cost of the referendum, the massive disruption to the Greek banking system and real economy were for precisely nothing.
Still, I doubt that the Greeks, like the Italians, will deliver on the structural reforms that are required (they haven’t so far). They will continue to do the austerity, because budget cuts are easier than fixing institutional problems. But the basic issue of low growth/no growth in unreformed, over-indebted Greece and Italy will remain. Those two countries, and particularly Italy because its economy and debt are so much bigger, are the nub of the Euro-area problem.