The negotiations between the EU, Greece, and its creditors drag on and Greece has recently postponed a repayment of debt to the IMF. It now seems clear that the best result for liberty would be for Greece to leave the Eurozone. The new Greek government wants to build a big and powerful state and violate the economic liberties of citizens. Its creditors should not abet the strangulation of economic freedom by extending their loans. Accommodating the Greek government will also help new leftist parties in other nations win votes for a program of economic illiberalism financed by foreigners.
The Syriza party argues for ending austerity by which it means it wants to aggrandize the state and put chains on the private sector. Let’s consider some of the “anti-austerity” measures on its agenda. First, they want to resist reform of labor laws, making it harder for employers to fire workers. This proposal violates the rights of employers and employees to make their own decisions about tenure. It also is blow against long term growth as it will make it harder for the market to match workers with the jobs they can do best.