Norbert Häring is an economist and journalist. Since 2002 he has said on finance and economics for the German commercial enterprise newspaper Handelsblatt. He is a co-founder and co-director of the World Economics Association (12,000 economists as participants worldwide) and co-editor of the magazine World Economic Review, each of which aim to sell a pluralistic technique to economic studies. In 2014 he was provided the Keynes Prize for Economic Writing for his contributions to Handelsblatt.
FMi: What is your opinion on the present day fame of financial system in Greece?For years, the prevailing view in Greece was to stay centered on European Union and in particular in Eurozone. Greek people were not asked neither informed about EU and Euro and are nonetheless not informed.
Norbert Häring: Well, infrequently everybody was asked. If countries needed to do referendums at the Euro and the treaties, a majority tended to say no. They have been routinely made to vote once more, till they did it proper, or their vote became truly not noted, as changed into accomplished recently with the no of the Dutch to the EU-cooperation treaty with Ukraine.
FM: Nowadays, there is an growing fashion of a double/parallel forex supporters which resembles Mr Schauble’s view on the problem. This includes Greece staying within the Eurozone, paying its money owed in hard forex while salaries and pensions will be paid in this “parallel” forex. What is your opinion about it? Is this policy contradictory to EU rules which state that only one foreign money i.E. Euro can flow into in the Eurozone?
Norbert Häring: The policies of the Eurozone have been bent in all instructions already, that might now not be counted a lot, I think. However, for Greeks it would be horrible, in the event that they needed to nonetheless pay the debt in tough currency and earn a lot much less. There is not any manner these money owed may be paid returned, because GDP in hard foreign money phrases would be very plenty decrease.
FM: Why follow such currency (parallel) and now not having instead a countrywide forex with the respective sovereignty?
NH: Because is a good deal higher for the creditor nations. They keep all the electricity that way.
FM: Is currency alternate sufficient for boosting financial system inside the globalized surroundings? What else is wanted? How can an economic system absolutely destroyed through EU which include Greek can recover and be aggressive in the globalized environment?
NH: That may be very difficult. A devaluation will not assist get better the residing wellknown that Greeks have gotten used to. It would most effective help to deliver down unemployment. With no assist and debt remedy, wages and living standards in Greece will sink in the direction of the tiers of nations like Bulgaria and Romania. Greece does not have a enormous industrial base any extra, that may advantage loads from the devaluation. The whole trouble for Greece, Spain and Portugal started when the EU become vastly enlarged with the aid of many jap countries with a whole lot lower wages. They are a opposition frequently for the Mediterranean international locations.