Should Germany Bail Out Greece?

It’s alarmist to say that one-half of a percent of the euro's G.D.P. could cause the collapse of the currency.
  • Transcript


Question: Should Germany bail Greece out? 

Ernst Weizsäcker: In some way by deciding 10 years ago on the introduction of the common currency, the Euro, Germany has made a commitment of bailing out, be it indirectly through the International Monetary Fund, or more directly through the European Bank.  But, I once calculated the amount of the Greek deficit compared with the Gross National Product of Europe, and this is less than 1/2 percent.  So, I would call it alarmist to say this 1/2 percent of the European, of the Euro’s own GDP lets the Euro collapse.  This is absurd.  If you compare that with financial risks incurred by the American state in certain war adventures or in the financial crisis, or wherever, those are much higher percentages leading indeed to a weak dollar, that’s correct, but the European industry is only happy if the overvaluing of the Euro finally finds an end.  So, I am not in a state of alarm.

Recorded on April 9, 2010