Of course, harsh austerity, can’t have the Greek government spending money in ways that might stimulate the economy, rebuild the tax base, and lead to increased revenues. Even George W Bush accepted that sometimes you have to spend a shitload of money to get out of a situation like this.
Their economy is wrecked, they have to borrow, they can’t pay it back on time so they have to borrow more at higher interest, which makes it harder to pay back, driving up interest rates again… This is a death spiral.
I saw an analysis recently suggesting that this will eventually work- after the Greek economy gets even worse, so that they cannot afford any imports to speak of. Money will stop leaving the country, but some will still come in via exports. Things should start improving when that point is reached.
But if that’s the plan, it would probably be a lot better to just suspend all aid(except maybe food if it gets that bad) and let the Greek economy collapse immediately. The recovery would be able to start a lot sooner that way.