Greece announced a 4.8 bln euros extra austerity programme on Wednesday in a bid to secure European aid to tackle its cripling debt problem.

Greece

But few people think this is the end of the story. Two German MPS have said Greece should consider selling some of its islands as one option to reduce debt. Fancy turning Santorini into a luxurious private resort, anyone?

On a serious note however, Stephen Jen, head of macroeconomics at London-based hedge fund BlueGold, says Greece needs a “Thatcher-like” wholesale restructuring of the economy to fully exterminate default risks and deep fiscal cuts alone might not be sufficient to calm bond markets in the long term.

“Fiscal austerity would only be a ‘kicking-the-can-down-the-road’ strategy for a country like Greece,” he says.

Jen says economic growth is the single most important factor in discussing debt sustainability.