I think the Greeks are going to end up having to face the reality of a lower standard of living under any possible option. They may be able to negotiate better austerity terms and avoid the estimated 40% drop in value of savings upon conversion back to the Drachma, but they will still be working for less money than they were before. They are simply not competitive any longer and have not been able to convince people that they can grow their way out of their debt. If they all take a significant pay cut at the same time, domestic products and services based on domestic resources would still be affordable in roughly the same proportions, but imports would be much more expensive. On the plus side, they will be able to export much more than they can today, which will increase employment. Eventually, they should be able to return to the same levels of productivity as their counterparts, assuming they have the same educational attainment and the same cultural work ethic and work conditions.