Weak economy, not debt crisis, is the main problem of Greece

GreeceEurozone should be divided into two parts – the strong and weak economies, according to the German economist Gerard Bokenkamp. The European idea of unity must be preserved, but that does not preclude the possibility to change the relationship between European currencies, expressed his oppinion the economist.

“In the long term it is likely to have a strong Eurozone economies and weaker economies, but allowing countries with less growth to go into the elite group”, said Gerard Bokenkamp. “If Greece left the Eurozone a few years ago, now will it would have stabilized the economy”, added he.

Namely the weak economy is the most serious problem in Greece, not debt crisis, according to another economist Gregory Papanikos.

“The problem with the sovereign debt of Greece is not as serious as some people think. The debt is a symptom that there is a serious structural problem in the economy. Of course that can not simply be deleted debt, because the debt securities are owned by European taxpayers”, according to the founder and current President of Athens Institute for Education and Research, Gregory Papanikos.

According to Panagiotis Vlachos from the research organization Vuliuoch, namely the easing of Greek debt would be a wrong step from the perspective of creditors.

“From the perspective of the Eurozone debt relief through the remission of part of it is not possible, because it can lead to difficulties in some of the creditors and generally discredit the Eurozone”, said Panagiotis Vlachos. “Around 92% of the national debt, which is more than 300 billion euros is owned by public institutions – the European Stability Mechanism, the European Central Bank and the governments of the euro area. This means that there is still a chance to get out of the markets and work with private creditors”, added the economist.

The debt problem in Greece can be resolved only if the economy starts to grow, according to other economists. The government must cut pensions, although this will be considered bad by society.