Even if every Euro of Greece's debt was gone tomorrow the country would still need more money every month than it gets in taxes. That's a long way from Austerity.

There unbalanced budget is 100% Greece's fault and has absolutely nothing to do with the EU. Long term the government has three options, collect more taxes, pay fewer benefits, fail. It's obvious which one Greece wants.

PS: Actually paying down their debt is another issue and would require Greece to maintain a surplus. Though, if they had that surplus they could just default and probably be better off.