Bold steps needed but the crisis with Greece can be resolved

Angela Merkel can and should offer Greece a fresh start because it is the right thing to do and accords with Germany’s experience and history, writes Jeffrey Sachs.

SOVEREIGN-DEBT crises such as the one in Greece can be resolved only through bold steps by both debtor and creditor.

The debtor needs a fresh start through a debt writeoff; the creditor must find a way to provide one without rewarding bad behaviour. For a deal to be struck, both sides must have their needs addressed.