Prof. Sinn has published a new book titled "Gefangen im Euro". I have only read a brief summary of it but the following stands out.
Sinn proposes a European Debt Conference to relieve the periphery countries of some of the excessive debts they have. If memory serves well, that is also a major point of Alexis Tsipras. Perhaps the two should combine forces.
Sinn, of course, also makes numerous other proposals (e. g.: a mechanism for 'temporary exits' from the Eurozone; a European Confederation following the example of Switzerland; etc.) but for him to propose a European Debt Conferrence with the above-stated aim is something I would not have expected to come from Sinn.
Sinn proposes a European Debt Conference to relieve the periphery countries of some of the excessive debts they have. If memory serves well, that is also a major point of Alexis Tsipras. Perhaps the two should combine forces.
Sinn, of course, also makes numerous other proposals (e. g.: a mechanism for 'temporary exits' from the Eurozone; a European Confederation following the example of Switzerland; etc.) but for him to propose a European Debt Conferrence with the above-stated aim is something I would not have expected to come from Sinn.
Are we talking the 2012 Tsipras or the 2014 Tsipras ?
ReplyDeleteI don't know which of the two. I am referring to the Tsipras who has made headlines for quite some time now by calling for a European Debt Conference.
DeleteWell. Prof. Sinn handles such economic problems from a pure scientific standpoint regardless of political possibilities.
ReplyDeleteFrom an scientific standpoint his arguments are 100% correct.
The political realities make it currently impossible that the northern countries EU would follow that path.
H.Trickler
Thru and this is the elephant in the room: Frau Merkel will never tell the germans we need to help this guys therefore the debt will be cut. Simply because she wants to win the elections.
DeleteThe circus will go on for years, Italy print bonds, the italian banks get the money from the BCE to buy said bonds, and again and again.
As long as noone ask the BCE to settle the balance, it can go on like with the FED forever.
@AnonymousApril 3, 2014 at 10:44 AM:
DeleteThere is not one elephant in the room.
Although bashing Germans is in vogue, you must admit that _none_ of the northern EU countries would agree to a debt reduction to Greece.
Reducing it for Greece would for reasons of equal treatment also result in even higher sums for Portugal, Spain, Italy and so on. It is simply wrong that the EU dislikes Greece or intends to harm it's economy.
But reality demands that all the southern countries manage their fiscal depths by themselves!
(BTW in case it was vice versa:
Would you agree to spend half of your fortune to some northern countries like Denmark, Sweden etc. ??)
H.Trickler