Tuesday, January 6, 2015

Ifo chief meaning: Tsipras has understood the problem – FAZ – Frankfurter Allgemeine Zeitung

Ifo chief meaning: Tsipras has understood the problem – FAZ – Frankfurter Allgemeine Zeitung

      

 
 
 
 
 
     
 
 
 
 
 
 
 
 
         
 
                                           
 
 
     
     
     
         
         
                                                             

There is a clear message: Only when separating Greece from the euro-zone, it could avert a government default. This is the opinion of the head of the Munich-based Ifo Institute Hans-Werner Sinn against “Handelsblatt Online”: “There is another state bankruptcy with a violent overt or covert haircut to be the follow new loans and debt cuts again and agai n in the coming years, if the country’s competitiveness does not restore through the exit from the euro and a devaluation of its currency, “said sense portal.

                         
         
         
                                                             
                                 

sense, relying on the head of the radical Syriza party, Alexis Tsipras. This is one of the few Greek politicians “who have understood the nature of the problem and therefore are willing to take risks,” said the economist. Tsipras that would put the Greek reparation claims against Germany on the table, however, belong to the “many unpleasant aspects of the action.”


                         
         
         
                                                             

Three weeks before the elections in Greece was angry at the weekend a discussion about a euro exit the crisis country. After a “mirror” report hold Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble (CDU both) this step for now acceptable. A victory for the Left Party SYRIZA applies when choosing safe. Tsipras has announced that in the case of an election victory terminate the agreements on the austerity plan with the troika of the European Union, European Central Bank (ECB) and the International Monetary Fund, instead launch a welfare program and negotiate a debt.


                         
         
         
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sense sees an urgent need for action, especially as the situation in Greece is deteriorating for years. “The Greek economy situation is unbearable for the population, and the ongoing new loans are intolerable for the community,” meaning “Handelsblatt Online” said. Greece just got twice as many as unemployed in May 2010. At that time the euro exit the country in violation of Article 125 of the EU Treaty was prevented by public credit of the international community, and it has been asserted that the country come quickly back on the legs.

                         
         
         
                                                             

“The truth is that Greece has experienced a drop in industrial production compared to the pre-crisis levels by about 30 percent, it is still a far cry from the price competitiveness of its economy,” said the Ifo boss. Thus, the Greek wages are twice as high as Polish. In addition, the country is still going to the state bankruptcy of the Year 2012 “huge government deficits” which would be “fined tedious and tricky” of the European Commission, although the ECB have tried everything to push interest rates on Greek government securities.

                         
         
         
                                                                 
 
  

 
 
 
                       

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Ifo chief meaning: Tsipras has a problem understanding

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Greece must, according to Hans-Werner Sinn leave the euro zone, otherwise a it does not bounce back. The Ifo chief is to be deducted from SYRIZA leader Alexis Tsipras.

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