Greek bankruptcy far too expensive

21st July 2011, Comments 0 comments

The Rabobank's chief economist says the EU cannot afford to let the currency crisis get out of hand and leaders of the Eurozone countries should clear up any uncertainties about Greece's financial situation, otherwise

Dithering According to Wim Boonstra, unless Eurozone leaders agree on a convincing series of measures regarding Greece, the financial markets will target other financially-troubled countries such as Italy, Portugal and Ireland. The Rabobank economist believes the European emergency fund needs to be substantially increased and Greece needs further financial assistance,

Mr Boonstra believes the Euro crisis is actually a political crisis and points out that it became obvious in 2003 that Greece should not have been admitted to the Eurozone. He says that when things started to go wrong in Greece last year, the problem was containable and EU leaders should have taken immediate steps to solve it,

Image problem According to the economist, the Greek financial crisis has been exacerbated by the fact that many in Europe, including politicians, believe that Greece has already been ‘given’ hundreds of millions of euros and Athens isn't doing anything to solve the problem:

Mr Boonstra says both Germany and the Netherlands have started looking at the European Union with a jaundiced eye, the free-trade agreements have benefitted us all.

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