The €109 billion rescue package pursued by Athens will not be enough to save the struggling economy, argues analyst Robert Oulds. Greece will require more bailouts, which will result in more austerity measures.
As the country braces itself for massive strikes to protest against the upcoming vote on more austerity measures, Robert Oulds of the Bruges Group, says neither bailouts nor more austerity is the answer to the Greek problem.
“Greece needs to default to start investing into their own economy,” believes Oulds, who heads a London-based independent think-tank.
Cutting public sector will not get the economy back on track. He says what Greece should really opt for is leaving the euro to devalue its own currency. Proper competitiveness is backed by economic growth, while Greece is plunging deeper into recession.
Greece’s wish to linger on the euro doorstep is “a ticking timebomb” for the country, as the single currency is nothing but “a political measure, which does not make economic sense,” argues Oulds. The analyst is adamant Athens will not be able to keep on clutching to the EU. But should they do so, the whole eurozone may get sucked in.