Ifo’s Sinn: let Greece go bankrupt
- Written by E.Tsiliopoulos
Europe needs to allow for bankruptcy within its borders and keeping Greece in the euro zone could be riskier than letting it go, the president of the influential Ifo Institute for Economic Research in Germany, Hans Werner-Sinn, told CNBC Monday.
Greece, the recipient of two international bailouts worth 240 billion euros ($260 billion), is currently facing a funding crisis which has raised expectations that the country could be heading towards bankruptcy, default and a possible exit from the euro zone.
But, according to the Ifo official, that could be the best possible outcome for the country, following yet another round of inconclusive talks over reforms between Greece and its lenders this weekend.
“I would say, in the end, a (Greek exit) is also desirable, because if one accompanies this exit with the help of the European community, with the promise to keep the gate open for Greece to return at a later point in time, this may well be a chance to regain the competitiveness of the country by devaluation,” he told CNBC Europe’s “Squawk Box” Monday.
source: CNBC
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