Greece's new finance minister, Yanis Varoufakis, warns that the euro zone would be doomed if the Greeks exit. Gavin Jones of Reuters has the scoop:
"'The euro is fragile; it's like building a castle of cards. If you take out the Greek card, the others will collapse.' Varoufakis said according to an Italian transcript of the interview released by RAI ahead of broadcast.
The euro zone faces a risk of fragmentation and 'de-construction' unless it faces up to the fact that Greece, and not only Greece, is unable to pay back its debt under the current terms, Varoufakis said."
Varoufakis, who has authored several books on game theory and was previously employed by the Valve Corporation, made these statements in a recent interview with the Italian state television network RAI. His words align with the message of the new Greek government led by the leftist SYRIZA party, which rode a wave of anti-austerity sentiment to electoral victory earlier this year. The new government is now attempting to renegotiate its debt payments to the euro zone and is looking for support from the Italian government. Varoufakis similarly labeled Italy's current debt crisis as "unsustainable." He says he seeks a unilateral rejection of austerity from the whole of the euro zone. Only then, he argues, could the Greek debt crisis be solved.
Read more at Business Insider.
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Check out the following video for a perspective on austerity from President of Iceland Ólafur Ragnar Grímsson. President Grímsson refused to subject his people to austerity during Iceland's crisis. It turned out to be the right decision: