Wednesday, July 08, 2015

Economists urge Dept Relief for Greece

The economist Thomas Piketty, author of the bestselling Capital, said it was up to Merkel to show leadership and remember the benefits Germany had received from debt relief.

In a letter to the Guardian, Piketty and other leading economists wrote: “We urge Chancellor Merkel and the troika to consider a course correction, to avoid further disaster and enable Greece to remain in the eurozone. Right now, the Greek government is being asked to put a gun to its head and pull the trigger. Sadly, the bullet will not only kill off Greece’s future in Europe. The collateral damage will kill the eurozone as a beacon of hope, democracy and prosperity, and could lead to far-reaching economic consequences across the world.

“In the 1950s Europe was founded on the forgiveness of past debts, notably Germany’s, which generated a massive contribution to postwar economic growth and peace. Today we need to restructure and reduce Greek debt, give the economy breathing room to recover, and allow Greece to pay off a reduced burden of debt over a long period of time. Now is the time for a humane rethink of the punitive and failed programme of austerity of recent years and to agree to a major reduction of Greece’s debts in conjunction with much needed reforms in Greece.


No comments: