Greece struggles to tackle massive debt crisis

2010-03-05 13:45 BJT


An analyst from the German Economics Institute has weighed into the debate over measures needed to ensure the recovery of Greece's economy. He stressed that Greece's exit from the euro area would not help solve the problem.

Christian Dreger, Head of Department of Economic Stimulation, G.E.I., said, "The Greek government has to further decrease its expenditures, it has to increase revenues. Also measures are required that could boost the external position of the Greek economy. So it should be measures that are directed towards the improvement of the export performance."

For Greek an exit from the euro area does not make sense at all. It will increase foreign debt of Greece enormously so in the Greek intention, Greece should remain in the euro area and for this policy - as I said - a stronger consolidation effort is required."

Greek Prime Minister George Papandreou, center, leaves Greece's Presidential Mansion after meeting President Karolos Papoulias in central Athens, Greece, on Wednesday, March 3, 2010. (AP Photo/Petros Giannakouris)
Greek Prime Minister George Papandreou, center, leaves Greece's
Presidential Mansion after meeting President Karolos Papoulias
in central Athens, Greece, on Wednesday, March 3, 2010.
(AP Photo/Petros Giannakouris)