LE FIGARO. – Activation Plan aid to Greece Will there be enough to reassure the markets?
BART VAN ARK. – Nothing is less certain. If using the rescue plan EU-IMF had become inevitable due to the rates imposed by markets, one plan will not help. It will take others. Because Greece can not simply put in order its public finances. She will have to undertake structural reforms, which, by definition, are long and painful. It must focus on its productivity, decreased significantly, and quickly find a way to create jobs.
Before release the money, should there be a new dose of austerity in Greece?
To have a chance to be swallowed, the pill should not be too bitter. If you cut too much spending, it will exacerbate the risk of recession.At the same time, Greece has to reassure the markets over the medium and long term, by engaging in a meaningful and specific reforms. It is not shocking to ask Greece for new safeguards.
The risk of contagion to other European countries there in recent days?
I do not think. Markets are well sorted. Portugal and Spain are in very different situations of Greece. Although Portugal has a similar financial problem and a serious deficit of structural reforms, the situation is less dramatic than that of Greece now payday loan. As for Spain, much larger economy, it began structural reforms, and its banking sector is stronger.
The cohesion of the euro area is at risk?
I do not think so.The eurozone saw, for sure, his first financial and economic crisis. But this is not the end of the Euro! This crisis, which I find exciting force, in contrast, Euroland more economic integration. Europe must urgently address this need for economic integration. There is no other way. The hypothesis of a breakdown of the euro area is not realistic to my eyes.
More integration, it means there a belt tightening for everybody?
In the short term it seems inevitable. Public deficits rise between 5% and 10% of GDP. They strike even the most virtuous countries such as Germany, which will perhaps five years to return to fiscal sanity. The euro area has become credible.In the medium term, more integration, it means more responsibility for each other in their economic policy.
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