Greek crisis: “Geuros” to save Athens

22 May 2012 – Presseurop EUobserver.com

The chief economist of Deutsche Bank, Thomas Mayer, speaking at a symposium organised by the German daily Die Welt, has proposed introducing a "Geuro" for Greece – a parallel currency to replace the euro," allowing Greece to devaluate while staying in the eurozone," explains the EUobserver

If the radical left-wingers win the 17 June elections and stick to their promise of scrapping the €130 billion bail-out and its austerity requirements, Greece could still stay in the eurozone without financial aid if it introduced a parallel currency. The "Geuro" would come as promissory notes, a form of government-issued debt that can be sold on. It would devaluate sharply against the euro but would allow the government to buy itself some more time to carry out reforms and pass budget cuts... [...] One pre-condition for the scenario to work would be that aid would still come from other euro-countries and the International Monetary Fund [...] Cash-strapped Greek banks would also need to be rescued by creating a European "bad bank" – according to the Deutsche Bank projection.

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