Grexit With Help: Hans Werner Sinn

Includes: EU, GREK
by: Constantin Gurdgiev

My favourite Bad Dude of German Economics, Hans Werner Sinn, on the Greek crisis:

An orderly Grexit is, in my view, still more disruptive and costly to all sides than a facilitated debt writedown and restructuring, while allowing Greece more time and fiscal room for implementing real reforms (as opposed to the currently proposed reforms, which are aimed solely at addressing short term fiscal imbalances).

Truth is - Europe has the means to meaningfully help Greece, as well as other 'peripheral' states, to get back onto the growth path consistent with long term sustainability (in Greece's case, we are talking about 3.5-4 percent annual growth averaging over a good decade). What Europe lacks is the will.