Newsweek reports on the Economists statement opposing debt and austerity policies for Greece. The economists have warned that without debt cancellation, Greece will remain mired in austerity “with no possibility of escape” ahead of landmark elections on Sunday that will decide the fate of the country’s membership of the euro and wider financial stability of Europe.
The report refers to signatures collected from UK and other countries backing the same statement endorsed by 40 Australian economists earlier in the week.
One of the signatories to the letter, professor Malcolm Sawyer at Leeds University told Newsweek: “As far as one can see, without renegotiation Greece would continue to go on the high levels of unemployment for the foreseeable future with no possibility of escape.”
“Stimulus has to come from somewhere,” he said. “Without debt renegotiation, Greece will continue to be mired in austerity.”
Sawyer added that debt renegotiation in Greece could spark similar considerations in other indebted countries like Portugal, Ireland and Spain.
The letter also called on the Greek government to stimulate demand and launch an investigation into endemic corruption and inefficient or ineffective use of public funds.
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