The problem is not austerity versus growth. It is that our social model —whether in France or Greece or elsewhere in Western Europe — no longer works. With varying degrees of recklessness, European governments have sustained high standards of living and shrinking economic growth by increased public spending without factoring in the unintended consequences of this policy: that sluggish growth would leave them unable to finance a growing public debt and pay an ever-expanding welfare bill.

With only moths left in the state coffers, governments have no other choice than to tighten the belt or hang from it. Greece cannot pay state salaries and finance its debt without the massive bailout it was awarded last year. Spending money it does not have to spur growth would not generate enough revenue quickly enough even in the best of circumstances — so borrowing more and initiating stimulus packages is not an option. Reducing taxes to release a revenue-generating spending spree would be short-lived unless it could also jump-start the private sector. But this is unlikely until major structural reforms in the labour market occur, red tape is removed and borrowing is available again for investors to take risks. Austerity is the only path to recovery although it is strewn with painful steps; it is already causing the contraction of the economy.

All this was avoidable if Western European economies had reformed themselves when growth was relatively robust and public debt had not yet spiralled out of control. But contented societies refused to burden themselves with the necessary sacrifices.Now it is too late to emerge from this train wreck without significant casualties.