The IMF says the austerity being imposed on Greece is a mistake. Only the EU is in favour of enforcing the impossible burden of debt. The effect of enforcing austerity doesn’t reduce the ratio of debt, but raises it. The austerity programmes have made it more impossible that the debts will be paid, not less. So what is going on?
The EU is using the Greek debt crisis to destroy the remaining sovereignty of the European member states. The result will be the loss of fiscal independence of the member states. This is one of the final centralisations of EU authority over the member states.