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Thirty-Five International Economists Demand Write-down and Restructuring of Greece’s Debt
22 January 2015
Pensioners taking part in a protest against austerity outside the Greek financial ministry in Athens in December 2014.EIRNS—A group of thirty-five international economists has signed an open letter, published Tuesday in the London Guardian, demanding the cancellation "of a large part" of Greece’s unpayable debt, and adoption of "new terms of payment which support the rebuilding of a sustainable economy." This settlement, they argue, "should mark the beginning of a new EU-wide policy framework favouring pro-growth rather than deflationary policies." The letter appears just days before Greece’s scheduled elections Jan. 25. As economists, they note that "the historical evidence demonstrates the futility and dangers of imposing unsustainable debt and repayment conditions on debtor countries; the negative impact of austerity policies on weakening economies; and the particularly severe effects that flow on to the poorest households. We therefore urge the troika (EU, European Central Bank and IMF) to negotiate in good faith with the Greek government so that there is a cancellation of a large part of the debt and new terms of payment" The Greek government is urged to "abandon the austerity programme that is crushing economic activity and adopt a more expansive fiscal policy setting, targeting immediate relief from poverty and stimulating further domestic demand... We urge other national governments to exercise their votes within official sector finance agencies and to pursue other diplomatic activities that will support a cancellation of a large part of the Greek sovereign debt and new terms of payment for the rebuilding of a sustainable Greek national economy." The full text of the letter and the signers can be found at http://www.theguardian.com/world/2015/jan/20/greece-needs-debts-cancelled-and-growth |
