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Studio Guest
Our studio guest is Wolfgang Gerke, President Bayerisches Finanz Zentrum (Bavarian Financial Center). We talk with him about the Greek debt crisis and the consequences for the European economy, taxpayers and banks.DW-TV: Greece has to come up with a huge amount of money. We expect them to cut a lot of costs. Salaries, there has been tax hikes already, is that the right way, or does this kill any chance of Greece actually getting back on its feet? Wolfgang Gerke: On that way there are many things which have to be done and these things should have been done many years ago, and this isn’t the international speculation bringing difficulties to Greece, and this aren't the rating companies. No, the Greece itself produced all the problems, and they have to get a better pensions system. They have to pay their taxes and so on, and that will help Greece, but on the other hand now, to save so much money will produce a dramatic recession, and that isn't a real help for Greece." DW-TV: I mean, because Greece is already in a recession, how can we prevent it falling into a depression? Normally, in a recession you have to invest, you have to give the country the ability to produce growth. Now I don't see that these measures will do that.   Wolfgang Gerke: Yes. And I would say we have to go a very different way, perhaps a very risky and difficult way, but Greece has to go back to its own currency. And that will help the Euro, but that's only one story. The more important story is that Greece will be stronger in the export, will be more attractive for tourists, and Greece will pay all the employees with less (inaudible) money and that will help to avoid revolution on the street. DW-TV: Well this scenario had been discussed for quite awhile. Is it still an option? Wolfgang Gerke: It is I would say no option further on. One thing at the moment, it will be the next option if there is a further case like Greece. But that's, in my view, a signal, that it would b...
Video Length: 193
Date Found: May 05, 2010
Date Produced:
View Count: 0
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