The director of Belgium think tank Bruegel Guntram Wolff gave an interview to Ta Nea where he explained that Greece will continue to be under the European Commission’s supervision even after the bailout program ends. Mr. Wolff has supported the allocation of EU funds to Greece to support growth and opposes the current austerity policies.
In his interview, Mr. Wolff notes that while Greece may complete the bailout program without any budget deficits, the situation will be fragile and as such the Commission’s supervision will likely continue. The think tank director argued that current estimations on the Greek debt and its sustainability suggest that the debt will be reduced over the next years, provided however that there is growth in the economy.
Later in the interview Mr. Wolff stresses that Europe needs to change its financial police, while arguing that the countries in the European North must “spend more” and carry out investments in order to support growth. Otherwise Europe will continue to be threatened by deflation and high unemployment rates, which in turn may reinvigorate the financial crisis. The think tank director concludes that the change in policy is not necessary merely for political reasons, but rather for financial reasons.
