Eijffinger: ‘Greek exit from eurozone inevitable’
Greece leaving the eurozone is inevitable, according to professor of financial economics Sylvester Eijffinger. Last week, on Dutch radio, he argued that the Greek voters for far-left and far-right parties have not understood the message of their own saying: ‘You can not have your cake and eat it.’
The private sector has been anticipating on the departure of Greece. It will still be an expensive operation but less than one and a half year ago, according to Eijffinger. “The private sector has taken its loss, it has already written off 75 percent of the state debts”, he said.
Moreover, Eijffinger said that the past one and a half year he has been arguing for a higher amount of the emergency fund. If it had been up to him this should already have been raised to above trillion euros. “This has a paradoxical effect. Compare it with a lion tamer: if he has enough authority the lions remain tame. If he has little authority, the lions, in this case the financial markets, will attack.”
