Brussels – A restructuring of Greece’s debt or a second bailout from the European Union and the International Monetary Fund coupled with austerity measures and structural reforms will not be enough to ensure the country’s long-term economic future, according to the chief economist at a leading Brussels think-tank who is urging the EU to generate greater investment in the debt-ridden country.
“The key here is to create a positive economic and political future,” Fabian Zuleeg of the European Policy Centre told Kathimerini English Edition. “It is abundantly clear now that simple austerity measures are not enough: they are not going to lead the Greek economy to a higher growth path. If we want to give economic and monetary union a long-term perspective than we need to find vehicles to channel investment from the stronger countries to the weaker countries: true investment, not a transfer – something that will give returns.”
Posted in Economy, European Union, Greece
Tagged austerity measures, Debt restructuring, EU, euro, euro crisis, European Investment Bank, European Policy Centre, European Union, eurozone, Fabian Zuleeg, Greece, Greece austerity, Greece bailout, Greece debt restructuring, Greece economy, Greece euro, Greece eurozone, Greece IMF, Greece investment, Greek bailout, Greek crisis, Greek debt crisis, Greek economy, Growth and Stability Fund, IMF, International Monetary Fund, project bonds
Illustration by Manos Symeonakis
Greece’s debt crisis has given people license to blame its inhabitants for all kinds of things, so it was heartening last week to hear a leading European politician say, “You can’t blame the Greeks.” The comment by Ed Miliband, the British Labour Party’s leader, was for domestic consumption, as part of an attack on his country’s Conservative government, rather than as an expression of support for his fellow socialists at PASOK. But it was a timely reminder that the Greek crisis is not taking place in a vacuum and that the country’s experiences and dilemmas are being replicated in other parts of the world.
“Your austerity rhetoric has led to the lowest levels of consumer confidence in history in this country,” Miliband told British Prime Minister David Cameron in Parliament after he revealed that the economy had grown by just 0.5 percent of gross domestic product during the first quarter of the year. “You’ve been prime minister for a year,” the Labour leader added. “You can’t blame the Greeks, you can’t blame the Bank of England, you can’t blame the last government, you can’t even blame the snow.”
Posted in British politics, Economy, European Union, Greece, Greek politics
Tagged austerity measures, Britain, Britain austerity, Britain debt, Britain deficit, Britain GDP, Britain spending cuts, British economy, Conservative Party, Conservatives, David Cameron, David Miliband, European Union, Greece, Greece austerity, Greece debt, Greece deficit, Greece GDP, Greece spending cuts, International Monetary Fund, Labour, Labour Party, Public spending cuts, TUC, UK, UK debt, United Kingdom