Moving toward the production possiblility frontier?????

The Eurozone is a mess (the subject of my senior seminar in the Spring, by the way).  The financial crisis of 2008 has led to a situation where country after country must take "austerity" measures in order to cut their public debt and, by assumption, make their economies more efficient.  The poster child for supposed inefficiency is Greece.  So what is the result?  According to a post at Naked Capitalism ,

Austerity measures are taking their daily toll on Greece. Suicides and attempted suicides have jumped by 22.5% since 2009. The unemployment rate rose to 18.2%. RTL, the largest radio network in Europe, lost 50% of its advertising revenues in Greece since the start of the crisis—and decided to leave. And now pharmacies are having difficulties obtaining medications.
The pharmacy problem is an unintended consequence of the austerity measures that the bailout Troika (EU, IMF, and ECB) is imposing on Greece. To cut its healthcare budget, the government has reduced the prices that the industry can charge state-owned insurers. So wholesalers are selling their limited supply outside Greece. And state-owned insurers, whose budgets are squeezed as well, delay payments to pharmacies, which then can’t pay their wholesalers for the medications they do get. Thus, wholesalers are even less likely to sell to pharmacies—and the system breaks down. A microcosm of the current state of the Greek economy.
Yet more cuts are coming......

Look at all the tradeoffs here.  Save the Eurozone by starving Greece.  Save the financial sector at the expense of the real sector---all to make economies more efficient.  But what about equity?  And how is it possibly efficient to have empty pharmacy shelves?