EU May Soon Start Treating South Europe 'Much Like' US Treated Cuba, Iran

Institute for the Study of Long-Term Economic Trends (ISLET) president Michael Hudson offered a lesson for Portugal, Italy and Spain, whose economies have dropped while unemployment has risen in the wake of the European debt crisis, to anticipate further lender-imposed austerity measures.

MOSCOW, August 17 (Sputnik), Yulia Shamporova – Debtor Southern European economies suffering under strict austerity measures imposed by their lenders must seek an alternative to the grim political and financial practice, the head of the ISLET told Sputnik.

"Experience shows that it is not possible to reason economically with the German and eurozone creditors," Michael Hudson observed Monday.

"It is best to start at the outset to anticipate being treated by Europe much like the United States treated Cuba, Iran and North Korea, and make plans for an alternative to chronic austerity and emigration," he emphasized.

On Friday, the Eurogroup approved an 86-billion-euro ($95 billion at the current exchange rate) bailout package intended to rebuild Greece's ailing economy.

The aid package came with a series of strict economic reforms imposed on Greece by its lenders, which the ruling left-wing Syriza party had originally vowed to eradicate when it swept to power in January.

A nationwide referendum rejecting austerity early last month failed to bring about more favorable terms in Athens’ negotiations with its creditors.

The demands of the Greek population are unheeded amid economic reforms imposed on Greece by its creditors, ISLET head noted.

"Neither the Greek negotiators nor Greek voters were given a voice in the settlement terms. Their economic arguments to eurozone negotiators were met with stony silence," Michael Hudson said.

"The austerity measures imposed on Greece by Germany and the European Central Bank [ECB] are a bad policy that will force Greece into deeper austerity," the ISLET president emphasized.