“The Euro Crisis Is Not Over” Former ECB Chief Economist Urges “Greek Sabbatical From EU”

Donate

Originally appeared at ZeroHedge

Otmar Issing, former Chief Economist and Member of the Board of the European Central Bank and the German Bundesbank, brings back the specter of Grexit scenarios, demanding a Euro-sabbatical for Greece.

KeepTalkingGreece.com reports that, uin an interview with business news magazine WirtschaftswocheIssing warned of a new flare-up of the euro crisis.

“The euro crisis is not over yet,” said the economist, one of the architects of the Euro.

Issing called on a policy that would include EU treaties allowing the possibility of temporary withdrawal from the monetary union.

States like Greece would do well with a Sabbatical outside the monetary union. However, it should be accompanied by massive aid from other countries and a growth-oriented economic policy. And one would have to make re-entry into the euro zone dependent on fundamental reforms, ” Issing said.

Issing no longer relies on the Stability and Growth Pact, a core element of the economic and monetary union. “I would not have considered the dimension of its dismantling by the governments”.

Otmar Issing lashed out at the Greek government saying “the government is still in an anti-growth policy.”

He also criticized Italy saying

“It also did not seize the opportunity. The country has saved tens of billions of interest without using the leeway. ”

The Wirtschaftswhoche article has the title “Economist demands Euro-sabbatical for Greece.”

"The Euro Crisis Is Not Over" Former ECB Chief Economist Urges "Greek Sabbatical From EU"

I don’t know exactly what institutional role 81-year-old Otmar Issing currently has other than sitting at a dusty desk as president of the Center for Financial Studies (CFS) at the Goethe University in Frankfurt am Main since 2006. He is also Goldman Sachs adviser etc etc etc.

He has been calling for Grexit since 2010 saying Euro exit would be good for Greece at least once a year… Leaving the euro might help struggling Greece, German chief economist, euro architect and former European Central Bank (ECB) board member Otmar Issing told CNBC on Tuesday.

The euro is irreversible – but if it is irreversible for every country has become an open question,” Issing told CNBC.

Then, Issing told CNBC in September 2015…

“For Greece, there are very good arguments that it would do well outside the euro area for some time to come, but it all depends on the Greek government’s reactions”

What he does not say it that the “massive aid from other countries” that will accompanie the Euro-Sabbatical or Grexit would be one more bailout.

If I remember well, Finance Minister Wolfgang Schaeuble had estimated a total of at least 50 billion euros for a 5-year- euro sabbatical. Schaebule offered Varoufakis & Co a temporary Grexit plan in March 2015, as part of the European lenders blackmail towards Greece.

Donate

SouthFront

Do you like this content? Consider helping us!

  • BL

    Greeks have one solution and that is to vote for “Golden Dawn”. The sooner they realize that they better off they will be.

    • paul

      Possibly. But parties that look attractive when not in government can be
      completely disappointing when in power. That would be my bet anyway.

    • Solomon Krupacek

      golden dawn is a fascists group. then we will destroy greece, you little hitler

      • BL

        Shut up kike

  • Carol Davidek-Waller

    Good idea. BUT Greece doesn’t need reform. The EU does. Greece’s debt isn’t the result of internal economic policies but of fraud, graft, a worldwide economic meltdown brought on by the greed and corruption of international banking. The EU troika ignored all this and imposed draconian policies on the Greek people resulting in asset stripping and made it impossible for Greece to settle a debt they j get agreed to.

  • hvaiallverden

    Sometimes, I dont know how much people do know about Greeks and the ECB/EU.
    To me, this is pure hogwash, period, an constant steam of utter bullshit and nothing of this is true, not an single word, expect for one fact, Greeks would be much better of if they reinstall Dramka, and gain national control of the central bank.
    And so on.
    The second massive lie is about Why is Greek where it is to day, and some have already stated this, I just want to as the Ameristan/Jooish controlled Goldman Schmucks, whom made this possible, and it all is based upon corruption, because I can remember that before Greeks went int the EU they didnt have this problems, of socializing private own debt, and now this same private orgs is plundering the Greeks.
    And so on.
    The third massive lie is the ECB it self, look around you, and watch the BRICSA, how much better is it this days, huh, in Spain, Italy, where people bails out private corps, in trillions, to feed the rich and shameless, wrapping this scam in economic sarongs and people believe everything, because they indeed stupid.
    And so on.
    Greeks aren’t the problem, EU is.
    But again, why have sympathy with an coward people, whom sees only short time gains and dont give an rats ass about the future.
    Let the Malakas have their ball on the way down to the bottom of the pit.
    And so on.
    There is Only one solution, wack the EU/ECB and breath free.

    peace