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Der Spiegel buries the euro and The Guardian suggests Greece to leave it

20 June 2011 / 17:06:25  GRReporter
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This radical solution is supported by the Director of the Economic Institute in Munich (IfO) Hans Werner Sinn and Professor Nouriel Roubini from the New York University. But this would not solve the problem, on the contrary, it would aggravate the crisis further as the Greek banks would collapse and could affect seriously the banks in other European countries. Larry Elliott from the British Guardian says in his article that Greece should leave the euro area. In his analysis, Elliott notes that the intentions of the inspirers of the euro were the most precious, but the criteria of the Maastricht Treaty were not possible to be implemented by all Member States and they were not as rigorous as they should be. According to the journalist, the euro is not a currency for all and therefore, there are two solutions: either to establish a club at the core of which would be Germany, France, Austria and the Netherlands, or the entire system would collapse with unpredictable consequences. The third solution for Greece would be to reduce significantly the prices and the wages, says Elliott. But this is impossible, since the implementation of this policy has only burdened the finances of the country and the Greeks would not cope this time.

Similar is the article of the Mayor of London Boris Johnson in the Daily Telegraph, which presents arguments in favour of a possible bankruptcy of Greece as the only just punishment for the challenging management of its finances. Johnson and most of the Tories in Britain, as The Guardian wrote, agrees that a country’s leaving the euro area should not be considered a taboo. According to London's Mayor, “this option is now all but inevitable, and the sooner it happens the better.”

Tags: SocietyPoliticsEconomic crisisGreeceEuroEuropean Monetary UnionDrachmaReturn to the drachma
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