Once more unto the breach, dear Greeks. Athens has agreed another package of last-minute measures to secure a further €8bn of emergency funding. Once again it has been forced to implement a policy that is not working – ever more severe rounds of austerity – to secure a dubious reward: enough cash to keep the country ticking over until next time. Even with the swingeing new measures, the government will miss its targets for deficit reduction. The case for allowing Greece to default has never been stronger.

Given the structural problems the economy faces, the government deserves credit for addressing at least some of them. Among the measures are a reduction in the

tax-free allowance on salaries from €8,000 to €5,000, a 20 per cent reduction in pensions above €1,200 a month, and a proposed reduction of 30,000 in the state workforce. A huge battle can be expected in parliament, echoing the unrest in the streets: Athens was crippled by strikes on Thursday.