Director of the European Department of the International Monetary Fund Poul Thomsen estimates that it will take 21 years until unemployment will return to levels before Greece was hit by the economic crisis.
Thoomsen’s shocking revelation was made during a book presentation At Atlantic council in Washington, USA.
Thomsen presented his estimations in a diagram.
Unemployment in Greece will return to pre-bailout levels of 7.8% average in the years 2001-2007 in 2038.
The same rate will be achieved in Italy in 12 years, in Portugal in 10 and in Spain in six years.
Thomsen noted that in these countries structural unemployment is high, inflation is low (deflation) and the debt has increased, adding that “these are the legacies of the economic crisis.”
Debt in six eurozone countries has exceeded 100% of GDP, he underlined.
He argued that “austerity is not the main problem” and that “Europe has made significant progress in reforms, its architecture, in banking union and the wall of its protection.
However, he estimate that it needs accommodative monetary policy, development of the financial space some countries have and tighter banking union. But most of all structural reforms.
He added that the problem in the eurozone is that there is a monetary union but not political union.(news247.gr)
Greek government sources commented with sarcasm on Thomsen’s projections and urged him to write a …blog post.
“Thomsen has been always correct in his projections, he forecast growth of 2.1% but there was recession of 7.1%. For 2016, he saw deficit and recession but there was outprefromance and positive development,” the sources commented.
PS If we believe Thomsen projections, Greek unemployed over 50 can go into retirement as soon as possible, while those 25-year-olds can hope for a work when they’re 46!? Chances are best for Greeks who have been born yet.