Sunday, May 08, 2011

German economist predicts Greek civil war

The original version of an article by Hans-Werner Sinn, head of the Munich-based Institute for Economic Research, appeared in the Sunday edition of the Frankfurter Allgemeine newspaper.

The following summary in English is from German broadcaster Deutsche Welle, linked here. The most startling quotation in my view is this:

"If Greece decides to attempt a so-called internal devaluation - that is by cutting salaries and prices within the country - it would risk setting off civil war," Sinn said. "Greece is heading for economic crisis in either scenario. But if it stays in the eurozone, Athens will kill off the companies that make up its economy."

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