A group of leading European economists around Prof. Hans Werner Sinn warns Greece’s creditors and advice the debt-ridden country to return to Drachma, or launch even tougher austerity measures and get a loan haircut of 30%, German Sueddeutsche Zeitung reported today.
The group called “European Economic Advisory Group” (EEAG), presented its tenth report, ”Report on the European Economy”, on Tuesday in Brussels, stating that Greece may need another bailout by 2013 at the latest.
Greece is unlikely to be in a position to refinance itself via the financial markets once the current rescue package runs out in 2013, while the economists recommend drastic steps to prevent the EU from having to provide Greece with long-term aid. Greece should either return to its national currency, the drachma, or launch even tougher austerity measures, including general cuts in wages and salaries, according to EEAG.
Know your enemy
The arch conservative and often paradox Prof. Hans Werner Sinn is Professor of Economics & Public Finance, Head of German think tank Institute for Economic Reseach (IFO) and a Macroeconomics expert.
He is one of the first German economists, who said clearly that Greece should exit the Euro Zone. His annual report presented in Brussels is nothing new but a re-chewing of his speech in September 2010. To tell you the truth I am about sure about what ‘legitimation” the EEAG group has apart from representing certain neo-liberals and arch conservatives German interests. It’s not a coincidence that the EEAG group presents its report the day Greek Prime Minister George Papandreou is set to meet German Chancellor Angela Merkel in Berlin.
Prof. Sinn was named “Dinosaur of the Year 2009” by the German Association for Nature Conservation for fairly good reasons. See our KTG report on H-W Sinn: Greece euzo zone exit)
Read more details on EEAG report in Capital/EN or Sueddeutsche Zeitung/DE
