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Berlin’s DIW president: There will be a political solution (for Greece) at the highest level ~ HellasFrappe

Marcel Fratzscher, president of Berlin's DIW, one of the leading economic research institutes and think tanks in Europe,

Marcel Fratzscher, president of Berlin’s DIW, one of the leading economic research institutes and think tanks in Europe,

Berlin’s DIW president: There will be a political solution (for Greece) at the highest level ~ HellasFrappe.

     “Our proposal is to link the payment of the loans’ interest rates with the growth of the Greek economy. If there is no growth, as is the case right now, Greece will not pay interest rates.
“I am neither a friend nor an opponent of Mr. Varoufakis. I am a friend of the good ideas that improve the situation and that is why I find the proposal correct because the Greek government assumes greater responsibility, the burden of Greece’s debt alleviates and is ensured that at some point in the distant future, when Greece recovers then it will be able to service its debt and interest, while the Greek people will be able to afford the burden of debt. I think that this is a good compromise,” he noted.

Moreover, he expressed the view that there will be a new haircut of the Greek debt. “Even if the issue of a haircut is considered a taboo at the moment in Europe and Germany, I am deeply convinced that there will be another cut. There is no alternative, if not immediately, probably later, when we find that the debt burden is simply too big. A part of the 240 billion euros was used to repay debt and interest rates. Yes, one can say that it did not remain in Greece … I do not know the exact figures, but certainly more than half the debt has been paid to lenders.”

He also estimated that the new government in Greece is an opportunity for a new start. Greece needs a political jolt, a political renewal. Nevertheless, I regret that it did not make good use of this chance … the Greek government rightly argues that we must deal with social injustices, to see how people will ensure minimum living conditions. Its failure is that it has not given a clear message that it wants to renew the country economically and politically. I

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