German Economists Suggest Temporarily Exclude Greece From The Euro Zone

Leading experts in Germany, influencing the formation of economic policy, offering to temporarily exclude Greece, the euro, writes on Thursday, the newspaper New York Times.

“If the European sovereign crisis was an old film about shipwrecked, it would have been a scene in which passengers on a lifeboat to understand that they have enough food and water for all, and that someone should be thrown overboard. And this one something – Greece. Such sentiments recently expressed a growing number of respected economists and other commentators, especially in the fully liquid Germany “- leads the RIA Novosti article in the newspaper fragments.

Greece to avoid default in May 2010, having received credit support for the EU and the IMF. The obligations of creditors under the support of Greece have made so far 219 billion euros – about 100% of GDP. Instead, Athens undertook to drastically reduce the budget deficit by cutting spending. However, data for January-July 2011 show that the budget deficit rose to 15.5 billion euros against 12.45 billion euros in the same period of 2010. The income budget for the seven months fell by 6.4%, while spending soared by 7.1%.

“If the country at the time will come out of the eurozone it would be better for all parties, especially for Greece”, – quotes the edition of Hans-Werner Zinn (Hans-Werner Sinn), President of Ifo Institute for Economic Research at the University of Munich.

The rules do not provide for the expulsion of the eurozone “make a slip” countries, but if the support of Greece would have been terminated, in Athens, there would be no other choice. In Germany meanwhile is growing opposition to “rescue” of Greece, as well as Ireland and Portugal, who also asked for help.

Otmar Issing (Otmar Issing), a former chief economist of the European Central Bank, also indirectly supported the idea of ​​”voluntary” exit from the Greek monetary union.

“If the country does not fulfill the conditions to which the agreed she should not provide further financial assistance. The country, which no longer provide support, must decide what to do,” – said Issing.

The head of the ECB Jean-Claude Trichet (Jean-Claude Trichet) has repeatedly called out the idea of ​​individual countries of the eurozone “absurd.” Together with him, and economists polled by the newspaper outside of Germany.

“It’s very risky. It would create a precedent for other countries to leave the region EUR. And the markets will begin to flirt with the idea that the eurozone as a whole has lost its meaning,” – said Silvio Peruzzi (Silvio Peruzzo), economist, Royal Bank of Scotland.

“This (way out in Greece) would undermine the euro itself. No one will benefit from this” – said, in turn, Charles Vyplosh (Charles Wyplosz), Professor of Economics at the University of Geneva .