Newly named Greek PM Lucas Papademos wrote this Vox column on 26 October 2011 on the Greek debt problem. He argues that the most effective and prudent way to reduce Greece’s debt burden is to implement the July agreement, reinforced by ‘firewalls’ to protect financial institutions and avoid contagion. Both require a substantial increase in EFSF ‘firepower’. Bank recapitalisation is necessary, but not sufficient.