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- To complete this cycle of deficit and state debt, there are different scenarios, one of them is the restructuring of public debt. How possible is this in your opinion?
 
- I think your readers should perceive it as a matter of time. The debt restructuring will happen in one way or another. Whether it will happen after one, two or three years, this is an issue to be decided by the EU in cooperation, of course, with the Greek government. Restructuring may be limited to an extension of the term for debt repayment. If the average repayment term of the Greek debt is 10 years it may be decided to extend the restructuring terms of maturity of the bonds and the average term to become 20 or 25 years. This would be the less painful way of restructuring. I think this issue should have certainly stricken the minds of European policy makers. But perhaps we are ahead and they have not been able to consider it properly so far. Anyway, my opinion is that restructuring will be made at some time, in one form or another. What I appreciate, however, is that most likely the restructuring will not be in the form of capital loss for creditors of Greece, organizations and individuals holding Greek bonds, due to the help of the EU. Restructuring is likely to become an EU initiative which will not cause creditors to lose money.  

- Besides the state debt, the Greek economy has another problem called competitiveness. How do you think  the Greek economy will again become competitive in international markets?

- The Greek economy, and I say it because I know it, can become competitive very quickly if the government decides that Greece will have a free market where markets will play a major role. And the government will have to eliminate all taxes for the benefit of third parties. Do you know what taxes to third parties means? Taxes in favor of third parties are the taxes that I pay here and they do not go in the Ministry of Finance, in the government, but to a lawyer, a notary, a third party. If taxes in favor of third parties are eliminated, and professions are liberalized, the Greek economy will be very competitive after 2-3 years. But I doubt that will happen. It could only happen under the pressure of two factors - the EU pressure on the political system, and the pressure of international markets upon the political system of Greece, under the threat of bankruptcy. Nothing else can exert pressure on the Greek government. I wrote about it in the past 30 years, I wrote about 800 newspaper articles on it. And I warned that the distorted structure of the Greek economy would harm the competitiveness, will made the balance of payments “explode” and now we are all experiencing it. And I think it is too late because we have a very serious problem. But it is never too late; let's start now with the right acts. Liberalisation of occupation, elimination of taxes in favor of third parties - we wrote this two months ago. We gathered 24 economists from around the world, Greeks, and made a statement which was published in Greek newspapers. It said what the Greek government should have done two or three months ago to begin to overcome the problems of the Greek economy. I hope that we have influenced the Greek government's way of thinking and determination to proceed and take the measures which I recommended. The EU insisted upon almost the same measures and the Greek government is not in a position to deny. So, I hope what could not happen in the last 30 years will happen in one, two or three years.

- I smiled because I thought you would say something about the Eurozone leaving. And if we return to the drachma, it would also help the competitiveness of Greek economy. What do you think of such a scenario, is it possible?

- I think this scenario is very unlikely because I have the feeling that the leading powers in Europe do not want and would not allow anything like that to happen. Europe can not break down to the countries forming it. Europe is forced to continue the formation of a federation, because global forces and strategies of major powers are pushing in it in this direction. So, what I expect, is that Europe will accelerate some changes planned for the coming years. It will proceed with the consolidation of state economies, which will support the countries facing problems. But these countries will no longer be allowed to follow the path of fiscal irresponsibility and to “accommodate” under the umbrella of European subsidies. This act of fiscal unity will force the countries, facing particular problems, to adapt to conditions that will make their economies competitive and fiscally sustainable. I support that policy and I think it is on its way, because Europe can not decompose to the countries that make it up. It would be a historic mistake for Europe to fall apart and become Europe of separate countries. Europe must move forward towards a federation, where each country has its own culture, language, manners and customs, but people will feel more Europeans, because Europe will protect them, provide security services and support to them. And this is the European dream. I fully support the European dream. And I want to make your readers think that there is room for Bulgaria, and Romania, and all other Balkan countries in Europe, and this is our destiny.