Athens Macedonian News Agency: News in English, 15-07-22

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] 'The programme is incoherent,' Nobel Prize-winning economist Stiglitz tells ANA-MPA

[01] 'The programme is incoherent,' Nobel Prize-winning economist Stiglitz tells ANA-MPA

"They made very clear there was not alternative. We had five years of austerity that has not worked," he underlined.

"The IMF predicts that the programme will lead to a decline of GDP. The IMF has said there will have to be debt relief and in the programme there is no debt relief. One has to see the programme as incoherent, not a way to lead to prosperity. But it was an ultimatum," he stated on the sidelines of Symi Symposium held on Corfu.

On the German position, he said that it is difficult to be understood as it does not make any economic sense. "It has been proven wrong," he noted.

Referring to the euro, he said, that it has been a failure. "Growth since the euro started is much lower that it was before. It was supposed to bring prosperity but it brought recession and depression. But it was a political decision; above all it was supposed to bring countries together."

Asked on the US support and President Barack Obama, he replied: "I do believe there is a lot of support. The most important seems to be trying to maintain stability. And part of it, is keeping Europe, eurozone together."

Moreover the American economist expressed the hope that there will be willingness to work with Greece, and push forward those reforms that are most important in changing, modernizing the Greek economy, attacking the problems of corruption. Unfortunately, in the past, some of the provisions that the troika has maintained had actually undermined the attempts of previous governments to deal with these problems. "The troika has created the worst conditions possible for successful structural reforms," he said.

Stiglitz also said that it is very difficult for outsiders to have a full grasp of what is going on in one country. "One of the reasons why outside conditionality almost never works is because there has to be a programme designed by the country and not designed with a gun at your head."

Asked if there is hope, he said: "There is always hope. I have seen the resilience of Greek people. I have seen what they have withstood already. I have seen their strength. Their intelligence with which they approached these problems. As long as social cohesion is maintained, as long as there is this a kind of commitment, there is a basis for hope."

Stiglitz underlined that when there is will there is a way and spoke of a deep reprofiling of the debt.

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