Greece has to swallow bitter austerity pill

After nine days of frustrating political talks, parties in Greece have failed to forge a coalition government. As a result, voters in the debt-stricken nation will head to the polls again — on June 17 — to try and end the impasse.

Athens' political crisis stems from parties failing to agree to follow through on a wide package of austerity measures, tax increases and economic reforms that cut to the heart of traditional Greek society. Those measures are necessary and have been imposed by the International Monetary Fund, the European Central Bank and the European Union to get Athens' financial house in order and as conditions for two bailouts totalling nearly €200 billion.

Greece's fiscal weakness and inability to be competitive or to get its public spending in order have long been the cause for jitters in every corner of the global financial community, and the political antics in Athens have long undermined the 17-nation Eurozone.

German Finance Minister Wolfgang Schaeuble yesterday stressed that it was not possible to re-negotiate an international aid plan for Greece. Schaeuble said EU members wanted Greece to remain in the 17-nation Eurozone, but underscored that it was "a sovereign decision by the Greek population".

The day before, German Chancellor Angela Merkel and new French President Francois Hollande underscored their intention to help Greece stay in the Eurozone and said they were mulling new measures to boost growth in the debt-ridden country.

But the overall thrust of a severe public finance overhaul, social reforms and austerity measures cannot be altered significantly.

The decision every Greek must make is whether they want Athens to remain part of the Eurozone.

The election is, in effect, a referendum on using the common currency or returning to the drachma. While most would like to see Greece remain and reform, it's a desire that comes with a price — austerity. The choice is that simple.