Sir, The difficulties of negotiations between Greece and the eurogroup pose a real risk of no agreement — with potentially serious consequences, economic and political, for the Greek people and for all citizens of the EU. The essence of an economic union is give and take — giving now that you may benefit later, as well as responding to the democratic demands of its citizens. In fact, in the view of many of us, “appropriate concessions” by creditors would actually benefit not only Greece, but even those so adamant at staying the course. Without a change, the European project could fail.
We fear that inability to reach a positive agreement could be the beginning of the break-up not just of the eurozone but of the European project. The consequent distress would contribute to disintegrative political tendencies. It is clear what Greece needs now: economic recovery — aided by a significant easing of fiscal targets, of a maximum of 1.5 per cent of GDP surplus; by some financial restructuring of its debts, including linking debt servicing to meaningful growth; and by fiscal reform that involves cracking down on corruption and weakening of the economic powers of oligarchs.
Moreover, as your columnist Wolfgang Münchau insists (February 16) the Greek government has a democratic mandate for alternatives to the failed policies of the past. For its partners, currently wedded to a draconian model of fiscal adjustment leading to lack of growth, there is the challenge and the opportunity of tailoring policy to recovery, investment and jobs. Admittedly this requires a degree of pragmatism: but the pay-off is the promise of more growth in Europe. And growth, as they say, lifts all boats. Time may be running out — but there is, it seems, a deal to be struck.
Prof Joseph Stiglitz
Columbia University, Nobel Prize winner of Economics
Prof Chris Pissarides
London School of Economics, Nobel Prize winner of Economics
Prof Mary Kaldor
London School of Economics
Prof Stephany Griffith-Jones
IPD Columbia University
Michael Burke
Economists Against Austerity
Prof Panicos Demetriades
University of Leicester; former Governor of the Central Bank of Cyprus and ECB Governing Council member
Prof Charles Goodhart
London School of Economics
Sir Richard Jolly
Emeritus Professor Institute for Development Studies
Professor Inge Kaul
Hertie School, Berlin
Prof Gustav A Horn
Macroeconomic Policy Institute (IMK)
Neil MacKinnon
VTB Capital
Prof Marcus Miller
Warwick University
Prof Jose Antonio Ocampo
Columbia University
Avinash Persaud
Peterson Institute for International Economics
Helmut Reisen
Shifting Wealth Consult
Robert Skidelsky
Emeritus Professor, University of Warwick
Hilary Wainwright
Transnational Institute, Amsterdam
Prof Simon Wren-Lewis
Merton College Oxford
