Published: 9th September 2013
Paul Vocker has warned that restructuring Greek debt would worsen the countries situation and has said a much deeper reform is required to help Greece become more competitive in the European Union.
Volcker said that confidence in the Greek market would need to be restored before a recovery is possible, which should provide Greece with more of an incentive to deepen their reforms. Volcker also mentioned the U.S. President Barack Obama had always thought the forcible entry in to the Euro a “good idea”. He said the economic crisis would have been worse if the various European countries had kept their local currency and respective fractionation's. He also said “some countries may not understand the discipline” that the common currency implied.
Carstens said adjustments, structural reforms and macroeconomic policies that are introduced in a time of a debt crisis are political decisions, and each country has to decide how far they want to take them.