Date: Monday 25 Jun 2012
Goldman Sachs chief asset manager Jim O’Neill has warned that worries about Greece pale in comparison to the danger from other peripheral southern European countries such as the third- and fourth-largest economies in the Eurozone.
“The recent election results in Greece show that the probability of its exit from the euro has considerably diminished. The true problems are Spain and Italy as both are just too big to be ignored”, O’Neill said in an interview with the Spanish newspaper El Mundo.
O’Neill made clear in the interview that the current “eurocrisis” had its roots in the monetary union’s inefficient structure. For him, Spain’s recent request for a bailout is perfect proof: “they don’t believe it’s a Spanish crisis, but a European one.”
As far as solutions go, this expert thinks all of the member states, including Germany, need to agree to create a eurobonds market “in the future”, give up individual membership in the G8 to be represented only by the Eurozone and set up a new European bank regulator led by the ECB.
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