Aid To Greece Only If Out Of The Euro

By Author: Italo Zanotti
Total Articles: 62
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The President of the Ifo economic research institute known Monaco, Hans-Werner Sinn, has launched a rather provocative thesis to solve the problem of Greece faced with a serious debt crisis. Greece is undoubtedly helped, said yesterday talking Sinn in Frankfurt, but despite this the ouster of the country from the Greek Euroland will be inevitable. Anything else would not have no other result than to result in a catastrophe. According to the president IFO, Greece will not be able to refinance its long-term deficit in its balance current through the financial markets. Consequently, Sinn continues, "there is no other option but to give our money to the Greeks." At length the Greeks could help reduce prices and wages, but such a decision would probably result in severe social tensions. Would be "a recipe mortal" in the view of Sinn. In order to avoid the collapse of social structures, Greek, and heard the famous German economist recommends Greece to leave the Eurozone. This would also help other countries of the monetary union which in turn are creaking under the impact of financial crisis and recession. "Any attempt to stabilize ...
... and maintain the Eurozone Greece amounts to a bottomless barrel. If there is left in Greece, the result will be to destabilize the euro, "says the chairman of the IFA. Sinn At the same time, however, also underlines the urgent need to help Greece because "if one does not help Greece this year will be in a situation of insolvency". According to the president of IFI, the right institution to implement appropriate measures in support of Greece and the IMF. The eurozone would not only have legal obstacles but he would not have the necessary means. The case is then left to the IMF, who according to Sinn has sufficient financial resources and, moreover, also has the duty to help countries in difficult situations such as Greece. The solution proposed by the Chairman of the difficulties Greek IFO can be rational as long as you want, but it's pretty unlikely that it will help to reduce the current state of irritation between Greece and Germany. Also because at the same time some members of the federal government, the CDU and FPD, suggest the greek government to sell state assets, especially the Greek islands uninhabited, arguing that a bankrupt should use all they possess to address the its commitments to its creditors. Not, however, you want to judge, statements designed to encourage the meeting Friday that today takes place in Berlin between Chancellor Angela Merkel and Prime Minister Giorgi greek Papandreou. The two heads of government will have to talk about the payment of reparation for the damage that the Germans, due to Greek during the second world war, suddenly returned after more than half of current century at the initiative of Communists and ultra-conservatives represented in Parliament greek . Even the call for boycott of German goods by the consumer association will be on the agenda. Some liberal and Christian Democratic leaders have appealed to Chancellor Merkel not to promise aid to Greece, asking if such a decision must be taken together with the EU, appropriate safeguards, such as the Greek islands. Meanwhile, however, after the hard savings plan submitted by the greek government and after the success of last Greek state in the issuance of a bond of 5 billion euros (per loan for which the greek state has to pay a relatively high cost) Some people in Germany began to ask him to stop giving to the Greeks and waiver as a populist and counter productive to ask for warranty service the Greek islands.
Luciano Barile
Photo: Hans-Werner Sinn. Other news in www.italo62.blogspot.com