Hint: Greek defence spending. They basically gave us money to buy their products. Both parties ar at fault.

Some predictions:

Ultimately if Greece takes the position that they will not try to pay their debts, their banking system will collapse and  they will have difficulties to do commerce with other countries. This leads to isolation, since no one will trust them as counter party for commercial transactions. It will drift into similar position as Argentina whose money is not exhangeable so really the only option for commerce is exchanging goods for goods. Does not work so well in practise.

If isolation continues for long, nationalism will start raising, and hate towards other countries, especially EU, will increase. Human nature, fault is always on someone elses side. If it goes bad enough, new leaders will raise...and Greece is heading towards North Korean model.

It is a sad story, really

Sadly this is where Greece's problems kick in. The logical thing, would be to reduce Greece's debt, and put the country on a sustainable path back to prosperity. However, Portugal and Ireland took their medicine without such concessions. More so though, if Greece is allowed haircuts on it's debts, Spain and Italy etc will start to demand the same.

There is also the fallout in Germany where the population seem to be incredibly reluctant to any kind of support for Greece. I suspect Angela Merkel would be more forgiving in terms, were it not such a vote loser in Germany.

Quite a bit worse? Is -26% of GDP "quite worse"? Even during war, countries lose less GDP! The programs were absolute disasters!

PS: I am of course not blaming only the EU, our politicians are corrupt and useless and even we, as people resist to some reforms. But to insist on the same route (have you seen the latest creditors paper sent to us - blackmailed actually) is simply stupid.

Let's not forget UK which is probably even more reluctant against another hopeless investment, bringing the BRexit closer. Even if you erase all Greece it debts it's economic system and taxation system are corrupt to the core. The path back to prospeirity is the EU parlement completely taking completely over for 2 years and making radical changes aka transforming it in a northern European country, I doubt Greece is wanting that.

Not the same kind of medicine, unfortunately. Twice as much austerity in Greece, with a crappy program to boot.

Trust me, if we leave the eurozone the last thing i'll do is cry.

W'll see I think the situation for the country is hopeless in any way with the Euro it's like taking a chemo cure to cure the internal corruption/tumors with the worst side effects imaginable. Without the Euro going back to the original drahgmar would also be a dissaster for your tourism sector, but on the bright side we could ask ourselfes how much further can the country sink anyway and Greece could get Russian support.

The EU could very well kill off Greece economically, if they would want to. It would be stupid, of course, but the option to cut all new funding and trade relationships is a threat that can be made towards a country refusing to repay a debt.

Trust me, we will. Short-term the effects will be VERY painful. Still better than this mess, though.