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Going out of the Euro zone will be catastrophic for Greek economy

14 January 2010 / 23:01:15  GRReporter
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According to Yannos Papadoniou former minister of economy and finance and Professor Yannis Stournaras – director of the Institute for economic and industrial studies, going out of the Euro zone will be catastrophic for the fate of Greece. The widely discussed question about the problems of the Greek economy and how they reflect on the integrity of the Euro are a matter of wide public debate in the country as well as abroad. At the presentation of the book “the power of the Euro – ten years later” two experts presented their point of view on restoring the financial stability of Greece.

The economic experts refuted the wide spread in the public opinion that Greece has to go out of the Euro zone. Yannos Papadoniou and Yannis Stournaras underlined that with the introduction of the common European currency was an important step for bringing together the countries from the European Union and of particular interest for the small economies like Greece. The losses for the local economy caused by an eventual adoption of the drachma as a currency would be much greater than the introduction of more effective restrictions in the state expenditures. Another measure which the government has to undertake is the utilization of the granted European subsidies. Yannis Stournaras underlined that for the period 2010 – 2013 Greece has the chance to acquire 26 billion Euro under the Program for strategic development which he called “a present” for the financial rehabilitation of the country and he added: “There are possibilities we just have to take advantage of them.”

Stournaras is explicit that the synchronization of the economic policy of Greece with the goals and the tasks of the rest of the countries in the Euro zone will lead to the desired financial stability of the internal market. Yannos Papadoniou said: “As a member of the European Union and the Euro zone, Greece has to follow strictly its obligations to its European partners. Since we take advantage of the privileges of a member country of the EU we have to carry out the duties we undertook.” According to the former minister of economy a solution of the major problems with the state deficit and the size of the foreign debt could be reached by optimization of the state expenditures and strict application of the rehabilitation measures. Some of the recommendations of Papadoniou to the new government of George Papandreou are concerning the reinstatement of the competitiveness of the market and the discharge of the monopolistic professions in the country. A strong privatization program and investments in the education as well as the human resources of Greece will help for the fast exiting of the country from the economic crisis.

“The power of the Euro – ten years later” follows the progress of the common European currency and gives specific recommendations for the optimization of the financial efficiency of the European Union in the future. In the book are presented the German and the French model of economic management which at the end of the day have a common goal – strong Europe with a stable common currency. Coauthors of the publication is the former Prime Minister of France Laurent Fabius, the deputy minister in Germany Nicolete Kresel, former minister of economy and finance of Greece Yannos Papadoniou and Yannis Stournaras director of the Institute for economic and industrial studies.

Tags: PoliticsEconomy Euro
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