[Humboldt University, Berlin ] – AN EVENING LECTURE ON on the euro crisis by Prof. Hans-Werner Sinn, President of the Ifo Institute for Economic Research at the University of Munich, is scheduled for Monday, 9 May 2011, at 19.30 in Lecture Hall 201, Spandauer Str. 1, 10178 Berlin. Prof. Sinn’s talk will be introduced by Humboldt Prof. Michael Burda who will provide his own comments and moderate a discussion with the public following the lecture.
According to the organizers’ announcement, “Germany is still enjoying the economic upswing, but all around the euro a gigantic debt tsunami is building up.”
The GIPS states of Greece, Ireland, Portugal and also, in part, Spain cannot only not refinance their own government bonds, also their foreign trade debts are now being assumed and deferred by the European Central Bank (so-called Target2 claims). Over the years the southern European countries have lived beyond their means and now they are being subsidised with additional billions. The time bomb of the swelling amount of liabilities of now 1.5 trillion euros is ticking. Of this Germany will have to cover 400 billion, with a growing trend.
The German Bundestag has long recognised the explosiveness of the European Stability Mechanism (ESM) and is insisting on its own budgetary powers. More and more members of parliament are declaring their unwillingness to carry the additional liability risks. Legislation on the introduction of the ESM will be brought before the Bundestag this summer.
Prof. Sinn’s lecture will examine the build-up and risks of the current euro crisis and show how the threatening tsunami can be averted.
The Humboldt/IFO Release (contact and invitation information) |
The looming Greek double-tragedy.
[Deutsche Welle] – “If Greece decides to attempt a so-called internal devaluation – that is by cutting salaries and prices within the country – it would risk setting off civil war,” Sinn said. “Greece is heading for economic crisis in either scenario. But if it stays in the eurozone, Athens will kill off the companies that make up its economy”…
Greek Prime Minister George Papandreou urged “the EU in particular, to leave Greece in peace to do its job,” while Finance Minister George Papaconstantinou later warned that Athens may need more hard cash support.
Without naming its source, French business daily Les Echos said on Sunday that the Greek government could receive another 20-25 billion euros from the EU if its series of austerity measures, including cuts and accelerated state sell-offs, failed to generate necessary capital.
Meanwhile, a survey published on Sunday indicated that the German people were widely against the bailout of Greece one year after it was agreed by the EU and the International Monetary Fund.
Continued at Deutsche Welle | More Chronicle & Notices.
