Wolfgang Münchau: 120% Debt/GDP Ratio by 2020 = 9 Years Of Strikes In Greece27 October, 2011, 17:27. Posted by Zarathustra
Tags: Economy, Europe, Wolfgang Münchau
Wolfgang Münchau went on to Bloomberg and talked about the latest deal the European debt on the crisis. Just as I am sceptical about how sustainable that would be to get Greece’s debt/GDP ratio down to 120% by 2020, he is not impressed by the deal as he is both sceptical about the debt sustainability of Greece even after deeper haircut, and how the EFSF leverage/insurance/CDP ideas are going to make things better.
The most memorable quote from Wolfgang Münchau in this interview is that “120% debt-to-GDP ratio by 2020? That’s 9 years of strikes in Greece,” and that is not sustainable. This is not the deal to solve the debt crisis, but it solved the “political crisis for the week”, in his view.