Jun
22

Greece’s Papandreou Says Europe at ‘Make-or-Break’ Point

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Europe is at a “make-or-break
point” and the lack of coherence in its economic and political
structures are a greater concern for investors than the crisis
in Greece, the nation’s former premier George Papandreou said.

With voters going to the polls in the southern European
nation today, Papandreou told British Broadcasting Corp.’s
“Marr” program that Europe needs a banking union and more
integrated fiscal policy.

“The market is telling Europe, not Greece: we are not
confident today in the European structures as they are in the
euro zone,” Papandreou said. “We are in a make-or-break point
in Europe. Greece has its problems, and we take on our
responsibility for our problems and our own mistakes, for our
past, for our bad governance and that is what we are trying to
change. However, the structures in Europe need to be
modernized.”

European leaders are set to turn their attention to
safeguarding the euro as the vote in Greece today threatens to
fuel even more disarray. With investors and policy makers
clamoring for clarity amid what Bank of England Governor Mervyn King called a “black cloud” over the world economy, Europe’s
chiefs are preparing for their fourth make-or-break summit in a
year when they meet in Brussels on June 28.

“Greece is only a precedent of the deeper problems that
Europe is facing and particularly the euro zone,” Papandreou
said.

Anti-Bailout Party

Today’s Greek elections carry the latest threat of stoking
the turmoil, as polls show the anti-bailout Syriza party running
neck-and-neck with New Democracy, which says a vote for Syriza
risks a Greek euro exit. Polls also suggest no clear majority,
bringing the prospect of further political gridlock.

The election is taking place a week after Spain said it
would seek a 100 billion-euro ($126 billion) rescue for its
banks, prompting concern Italy would be next to succumb.

Papandreou today said abandoning the single currency would
bring ruin for Greece, triggering bank runs, surging inflation
and a 20 percent drop in economic output. Sticking with the
current bailout is the best hope for the country, he said, even
if terms have to be softened.

“It is still a program which is manageable if we stay in
the euro,” Papandreou said. Abandoning the currency and the
rescue package “would be a major catastrophe.”

To contact the reporter on this story:
Gonzalo Vina in London at
gvina@bloomberg.net

To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net


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Greece’s Papandreou Says Europe at ‘Make-or-Break’ Point

Greece’s Papandreou Says Europe at ‘Make-or-Break’ Point

Greece’s Papandreou Says Europe at ‘Make-or-Break’ Point

Chris Ratcliffe/Bloomberg

With voters going to the polls in the southern European nation today, Papandreou told British Broadcasting Corp.’s “Marr” program that Europe needs a banking union and more integrated fiscal policy.

With voters going to the polls in the southern European nation today, Papandreou told British Broadcasting Corp.’s “Marr” program that Europe needs a banking union and more integrated fiscal policy. Photographer: Chris Ratcliffe/Bloomberg

Article source: http://www.bloomberg.com/news/2012-06-17/greece-s-papandreou-says-europe-at-make-or-break-point.html

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ΓΙΩΡΓΟΣ ΠΑΠΑΝΔΡΕΟΥ ΠΑΣΟΚ ΠΑΠΑΝΔΡΕΟΥ PASOK GIORGOS PAPANDREOU PAPANDREOU ΓΑΠ