Debt relief for Greece ‘absolutely essential’, says German economist Jens Bastian

German economist Jens Bastian said in an interview with the Athens-Macedonian News Agency (ANA), “Debt relief is absolutely essential. We very often used patch-up solutions that caused it to be postponed and, as a result, it is now once again on the agenda”.

Bastian stressed the importance of finding a sustainable solution so that the same issue does not have to be discussed again, pointing out that investors needed to see such a prospect before risking their money in Greece. “Very few investments will be made as long as the ‘Damocles Sword’ of debt hangs overhead,” he noted.

For the post-programme period, he said that a so-called “clean exit” was a priority but he highlighted the necessity for a cash buffer to ease the transition. “Greece cannot be refinanced alone by the markets in the coming years. Particularly, if the interest rates on state bonds rise again.”
On the issue of irredentism in the Balkans, Bastian said: “No country can join the EU if it disputes the borders, nor if it discusses such a thing hypothetically.” With respect to the name of the Former Yugoslav Republic of Macedonia (FYROM), he noted that “it is in Skopje’s best interest to find a solution, otherwise they jeopardise their EU accession. It is more important for Skopje because they want to join the NATO in June, otherwise this will be postponed again.”

Asked why China is already investing in Greece whereas Europe has “just discovered” the country’s geostrategic position, he replied: “China read Greece in a different way than Europe, which through its austerity proposals focused on a one-way street. China discovered possibilities and prospects.

ANA-MPA