THE Eurozone has been warned that it can not continue to dish out funds to ailing economies without them making any changes.
A leading specialist in the eurozone debt crisis claimed that the eurozone can not continue to pay out for country’s like Greece, Ireland or Portugal.
Otmar Issing, one of the founding fathers of the euro and a former European Central Bank chief economist, said it was legally impossible to throw a country out of the currency union, but giving money to a government which did not comply with rules and did not reform would put the bloc’s credibility at risk and set a bad example.
He explained: “One has to consider whether one can keep giving money to a country that has not yet fulfilled an obligation, which is still non-transparent, more or less fudges things.”
In his book “How we save the euro and strengthen Europe”, which was published this week and is written as a dialogue between the German economist and a journalist, Issing said a euro collapse would have severe consequences and there was no quick fix to the problem.