The American anthropologist and activist David Graeber proposes a simple solution: cancel debt. Well, his book " Debt: the first 5000 years " published in 2011 (Melville House) is worth reading for the deep historical research and original ideas.
His thesis is that cancelling partly or wholly public and private debt has been recurring in history of societies over the last 5000 years. Adam Smith said , a few centuries before, that no State had never repaid its debts. Why should this time be different? Graeber argues that this solution would be preferable to offset rising inequalities rather than introducing a set of tax measures on the rich. . But in his view, this will imposed through debtors' action or movements (such as Occupy Wall Street in the US) not by public institutions.
The partial debt write off (or 'haircut') imposed by the Troika in March 1992 is somewhat different from what Graeber has in mind. This forced agreement has been conditional to severe austerity measures which constitute a grave violation of economic, social and civil rights of the Greek people. It has in fact worsened the economic situation of Greece while allowing foreign banks (mainly French and German) to limit their losses and Greek banks being recapitalized at the expense of the Greek Treasury . The Greek public debt represented 130% of GDP in 2009 and after the 'haircut' reached another peak in 2013 at 175%! The unemployment rate rose from 12,6% in 2010 to 27% in 2013 (reaching more than 50% for the young unemployed). In the meantime, the Troika has durably reinforced its domination and Greece' loss of sovereignty has paved the way for the rise of far right extremism. Who will pay for these mistakes? Debt write off or payment suspension has to be decided by the debtor country unilaterally to give some relief (as Argentina did between 2001 and 2005 and Ecuador in 2008-09).