Stathakis: The greek debt is not viable

Stathakis: The greek debt is not viable

 

By Spiros Sideris – Athens

Greece’s debt is unsustainable said the MP of SYRIZA. Giorgos Stathakis, speaking at a conference organized by Bank of America and Merrill Lynch, on the occasion of the completion of the annual meeting of the International Monetary Fund and the World Bank, to which he was presented as the “shadow Finance minister of SYRIZA”.

In front of an audience consisting of people who shape the positions of the markets to the country, Mr. Stathakis spoke of the failure of the Memorandum in Greece, stressing that a “radical change” and a “change of the policy of reforms” is required.

In his speech Stathakis expressed the view that there is need of a “combination of changes” that must be made in European policy and to include “monetary easing, the revision of the financial framework and a new development agenda, in order to get the economy out of crisis ‘.

He also mentioned several sectors of the economy, focusing on growth.

Earlier Mr. Stathakis, stated to AMNA stated that “no serious assessment of the debt situation can declare it sustainable”, while he also referred to the European policy as it has evolved through the management of the crisis, which has led the European economy into a permanent state of stagnation.

Regarding the Greek exit from the memorandum in relation to the role of the International Monetary Fund, Mr. Stathakis expressed the view that the exit from the memorandum, as well as the return of the economy to growth, depend entirely on the need for a restructuring of the debt first, in order for financial resources to be released and at the same time make the return of the economy to normal growth rate sustainable.

On the “sustainability of the debt”, argued that “no serious assessment of the debt situation can declare it viable. Furthermore, historical examples show that economies that went with a first restructuring of the debt, while at the same time applying harsh economic adjustment programs, as in Greece, in 90% of cases, in three to five years, had to proceed to a second debt restructuring, because it is blatantly obviously that it is not sustainable”.

On the occasion of his presence in Washington and the annual meeting of the IMF, in relation to the position of SYRIZA for outlook, he said:

“We think that the International Monetary Fund, on the occasion of Greece, came for the first time in Europe after many decades. It turned out that the policy of the IMF, which is almost identical to that applied in the 90s in many countries, is inappropriate to deal with the crisis and we have the certainty, if not the conviction, that the whole Greek program has causes others than those which were regarded by the IMF as causes of the Greek crisis and therefore led to the complete failure of the program in which it participated”.