German Economist Clemens Fuest: Europe Faces a New Debt Crisis
The president of the most influential German economic institute, IFO Clemens Fuest, is not expecting the events in Spain and the possible secession of Catalonia to lead to turbulence in the currency union, sega said.
Catalonia is a very big problem for Spain, but I would not describe it as a risk to the euro area as a whole. And even if it comes to separation from Spain, Catalonia is very small and will be isolated. So I do not expect to have a serious impact on the currency union, the president says.
In the Horizon interview, Clemens Fuest warned: Europe faces a new debt crisis. In his words, the biggest problem of the currency union is now Italy.
I think Wolfgang Schaeuble is quite right. If we continue in the same way, we are facing a new debt crisis that is deeper than the one we have experienced. Debt in the eurozone countries is growing and is now close to 100% of GDP, the president of the institute added.
Clemens Fuest is categorical that while the eurozone is not stabilized, there is no possibility of expanding it.
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