Euro Founder Admits Some Nations May be Forced to Leave
One of the founding fathers of the euro admits that some states may be forced to abandon the single currency, but insists Germany would be better off staying in.
by Matthew Sparkes
Telegraph.co.uk
Otmar Issing, a former European Central Bank chief economist, warned that the eurozone could be heading towards fracture in a book called How we save the euro and strengthen Europe published this week .
“Everything speaks in favour of saving the euro area. How many countries will be able to be part of it in the long term remains to be seen,” said Mr Issing in the book, which is written as a conversation between an economist and a journalist.
At no point did he explicitly refer to Greece, but the debt-stricken country has been hovering perilously close to default and an exit from the eurozone as it makes harsh spending cuts and tax hikes to appease the EU and ECB after receiving billions in bail-out payments.
“We are still a long way off saying ‘that’s it, now we are sure to make progress’. Substantial reforms in almost all countries are still pending,” he added.
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2012-08-08 14:41:48
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