|
Germany not Greece should exit euro, Argentina’s Nielsen says
Germany should exit the euro and revalue its currency as “damage
control” to avoid the effects of contagion stemming from a Greek exit,
which would cripple banks and trade in Europe, according to former
Argentine Finance Secretary Guillermo Nielsen.
Germany’s higher
productivity warrants a higher, less competitive valuation for its
currency, Nielsen, 61, said in a phone interview on Wednesday. A Greek
exit would be more costly and threatens the solvency of the region’s
banks, he said.
“The discussion so far has been framed by the
predominant power in the region, Germany,” said Nielsen, named finance
secretary in 2002, months after Argentina defaulted on $95 billion of
debt. “Instead of searching for the truth, they continue to keep the
discussions under politically correct guidelines. They need to break the
standstill.”
A German exit would be easier to promote than a
devaluation of the periphery and would help generate confidence, Nielsen
said from Buenos Aires, where he is a consultant. Politically, it won’t
be feasible for Germany to increase transfers to southern Europe, he
said.
Meanwhile, the rest of Europe needs to push through “radical
change,” and Greece should issue paper bills to use as quasi-currency
immediately, according to Nielsen.
“A cross between an I-owe-you
and paper money would help bridge the funding gap and avoid Greece going
down the drain,” said Nielsen. “Simultaneously, Greece should stop all
movements of capital. They should have done that a long time ago.”
[Bloomberg] | 
Keine Kommentare:
Kommentar veröffentlichen