THE Greek government has been advised by British economists to leave the euro and default on its €300 billion (£255 billion) debt to save its economy.
The Centre for Economics and Business Research (CEBR), a London-based consultancy, has warned Greek ministers they will be unable to escape their debt trap without devaluing their own currency to boost exports. The only way this can happen is if Greece returns to its own currency.--
Comment: The extent of the Greek, Spanish and Portuguese debt problem gets highly exaggerated by these "experts". It is also rather ridiculous to suggest that a default would save the Greek economy. The contrary is the case. Only by maintaining the common currency and implementing an adaptation program can Greece save its economy. Both ways come with high costs. In the end, however, the option to hold on to the euro will prove to be the better way. The problem with Greek debt is not just German and French banks. A breakdown of the euorzone would have negative effects across the Atlantic and Chanell as well. Maybe the "experts" of CEBR believe that a new great depression will come anyway and the earlier it comes, the better, and the easiest way to trigger a depression would be a Greek default with its consquent contagion.