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You're not alone on that let's continue this story is actually just noted EU leaders now agree on a plan to tackle the region's debt crisis joining us now to dig further detail.
Is mark shall Alexander -- senior European economist at Jefferies International washed up let's start with a 50% haircut private investors holding Greek debt are agreeing to.
Is the right unrealistic.
-- While it's it's a number deciding point I think fundamental -- about in this space sometime next here will be spoke not a big tax cut for the time being it's good enough.
Keep getting that that's deteriorated doubts about a 120%.
It's it's it's good enough I think markets and markets -- not buying it fully but the key point in -- -- -- -- settlement then -- those agreement was that.
The tax cut will be voluntary and that is the key word foreign -- that idea that you not gonna have a hard default on Greece not going to have anything on movie anything to really to stabilize the markets.
And here's what I have a problem with you used the phrase for the time being.
It's good enough they hair -- actually Webster just reporting -- -- is just buys more time we use this annoying phrase kicking the can down the road if I'm sure -- hello where.
Economists suggested this plan is a -- in the pulling a rabbit out of the hat so what comes next a year two years down the road.
Well couple of years on the road -- lord let's not I think he'll be sons doesn't -- We're gonna look at Greece.
But again we're gonna look at economy which is struggling to grow which is in recession -- C and recession next see a economy which is a lot of the big part of the plan is actually -- and I did that -- Greece will be if the privatize a lot of facets of the to know about 65 billion euros.
Which is about 30% of the economist GDP I think when that doesn't happen when economy is shrinking.
We'll gonna have to come back to the to the table and enough to -- negotiate a big tax cut that's fundamentally and economy won't be able to live.
With that level of debt.
An economist here in the US out this morning writing that the plan.
Sounds good it makes sense but the mechanics of its implementation they're still a lot of details that.
We're not sure how other basically gonna do it and that in -- of itself could.
Cause a crisis of confidence in world markets once again -- what's your take on that that angle of this.
Mother a couple of things and indeed we had a fifteen.
We understand that some German banks and some French banks have accepted a -- kind of sort of accepted figure 50% of figure we have no idea what proportion of banks that I should -- so so I think.
This is a positive sign -- -- taken it decides to fundamentally I'm sure down the line and probably in a pretty.
You featured in a situation where banks are basically putting their hand up and saying.
Actually I'm not really cannot figure I'm not accept tips that have cut and it's gonna be a bit of a bit of a -- really to agree on the observation about Greece.
Then of course we have the issue of banks and we have -- each of EFSF and that's what we have even more uncertainty.
Fundamentally we know nothing about how you can politicians plan to implement.
What they've outlined on Paper and I think that's what markets really be focusing on.
Right so many details still left on.
Salt -- -- Alexander -- thanks so much for your time your insight on the European sovereign --
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