Grexit May Be Better for Greece: Euro Architect

Leaving the euro might help struggling Greece, according to Otmar Issing, the former European Central Bank (ECB) board member and chief economist who is known as one of the euro currency’s architects.

“The euro is irreversible – but if it is irreversible for every country has become an open question,” Issing told CNBC on Tuesday.
Issing raised eyebrows earlier this summer when he said that the euro’s irreversibility was an “illusion,” contradicting current ECB members who have insisted that there is no going back from the single currency.

However, economists and politicians away from the ECB have questioned whether highly indebted Greece can remain in the euro zone and whether it might in fact do better economically outside the currency union.

“For Greece, there are very good arguments that it would do well outside the euro area for some time to come, but it all depends on the Greek government’s reactions” Issing told CNBC.

CNBC

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Craig Erlam

Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam