Secular Café: Former head of Bundesbank on the euro problem

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Former head of Bundesbank on the euro problem Apr 30th 2012, 01:06 He says that at the time Greece was not ready to join the euro. But then, nor was Italy. IMO it was a political fudge rather than a sensible economic decision. http://www.bbc.co.uk/news/business-17853552 Quote: Greece should not have joined the euro, a former head of the German central bank, who was central to eurozone policymaking at the time, has said. But Ernst Welteke, who was Bundesbank president from 1999-2004, told the BBC that none of the eurozone's problems would be solved if Greece left. He added there should be greater transfer of wealth from richer parts of the eurozone to poorer parts. ...Mr Welteke said the current problems facing the eurozone were due to a debt crisis in southern Europe resulting from the financial crisis. He also highlighted deeper problems, such as trading imbalances, with some countries running current account surpluses and others running deficits. "Austerity alone is not the solution... without more growth the problems cannot be solved," Mr Welteke said. "There have to be structural reforms in all countries, not just in the labour market but in tax administration.

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