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Now be so cordial joining me now from Cologne Germany would -- as -- masses he's senior economist for the Cologne institute for economic research joining us buys Skype and -- -- thank you for -- speaking with us.
-- you save your very critical of the way the eurozone debate has carried on in the United States you say it's full of misunderstandings.
Leading to overly skeptical conclusions.
But to be -- -- What we've seen out of the eurozone hasn't been that encouraging hasn't.
Well I think indeed doom -- telling undervalued in the US currently.
On them when you look at it -- -- into -- -- -- most important issues which of the current account deficit -- the periphery countries.
Unlike Spain -- Bulk fuel UT the good note -- don't they already taking place.
I think that's a very important -- if you look at Italy and -- they already have a primary -- -- And interest rates aren't too high.
I'm currently if you compare it to the mid nineties so I think there's a lot of good you -- hotel -- course there are some bad here but.
Oh I think the year that is today -- -- bias in the -- Well would you agree though that more fiscal union is needed -- Euro zone project the single currency is to succeed and will and let me just follow that up with.
The second part of that question is will the countries -- individual member states be willing.
To give -- the -- sovereignty that it may take in order for the system to work.
We don't think indeed this whom we do need much closer fiscal union there and I think -- preparedness -- Will not be there about the do not need it we have done a lot of reform -- in Europe.
If you look at them micro economic surveillance the technical call back and many other -- so the institutional framework the -- of the eurosystem helping strengthen law.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That -- Buried many structural reforms in the young southern countries of the Euro.
Producing what we want to see you in the eurozone which is closer -- -- Their own countries -- -- heterogeneous -- thought that.
But within -- all the -- taking place now they are becoming more similar and most usable to Europe.
But those reforms -- -- absolutely stifling any sort of economic expansion in Greece and Spain and Italy.
It's very difficult to implement the kind of austerity measures of the being required by the Euro zone.
But at the same time grow your economy have to get around that.
Well we do indeed have -- problems with growth.
Lung wisdom some kind of like cream and kinds of credit crunch and a pretty countries.
But I think it's important -- you adjust the -- -- ask you need structural.
-- falls costing him.
But just improving -- -- for instance pension systems which do not.
The autumn could bring down the economy -- in the short -- You have to get these countries have been more targeted what we are doing with Spain -- and that is what is being discussed -- I think it will be implemented with Greece.
But really but realistically when you talk about Greece can Greece seven repay any amount of money that's already been lent -- it and is it inevitable that Greece drops out of the eurozone.
Well this is of course an open question and we are also not sure whether Greece will stay in the Euro loan.
-- I think.
-- What we hear -- Provera then -- from from the political arena where is that M I think we flew.
Be held in a way so that it can stay in the eurozone and there are some ideas floating around that could Saddam.
-- -- a -- like more long term health -- financial aid program or -- in exchange hallmark smoke true.
We will have to see how it did -- -- the troika report in the mid September.
-- will tell us more hands them we have to wait for this but it.
-- -- but you're right about.
Right -- -- can -- thank you so much for joining us -- the clock on 8 o'clock in the evening in Cologne Germany thank you -- I'll tell you this job -- by the European leaders is it that I mean are we tired of find out doesn't -- yes that means you have been saying of the -- US is some send it to be honest I think it is fair I think what we've seen amongst the lack of coordination has been a pretty stock and I think -- those.
He may disagree but I think it's absolutely fair look at the impact on our markets our interest rate of course it's a global market I willingly more integration I still question whether European countries pool will go for -- but fascinating announced debate goes on and --