Wednesday, May 5, 2010

Stiglitz: Euro May Cease to Exist

Agencia Estado reports that Joseph Stiglitz, Nobel Prize in Economics, has made very worrisome predictions about the future of the European Union. Speaking to BBC 4, the expert claimed that if the block does not resolve the difficulties faced by Greece, the Euro may cease to exist.

According to him, not even the plan to help the International Monetary Fund and the European Union, coupled with the austerity that Athens needed to receive the money, will stop the eagerness of speculators who continue to betting on a weakening of the euro zone.

Such conditions "are actually counterproductive to prevent a contagion."

Stiglitz explained that "when we have seen to what extent it is difficult for Europe to adopt a common stance to help one of their small countries, we realize that if a slightly larger country has difficulties, it is likely that Europe will have even more difficulties to reach an agreement in the long term", "while the core institutional problems continue, the speculators will know they exist "

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