Greece’s debt problems can be solved by a Brady bond-style rescue operation in which Greek government bonds are swapped against debt issued jointly by euro-region members, said German government adviser Peter Bofinger .
Peter Bofinger, an economic adviser to German Chancellor Angela Merkel, said a Spanish banking collapse could threaten the whole European banking system because Spain’s lenders have foreign liabilities of 160 billion euros ($201 billion), Deutschlandradio Kultur reported today.
Germany’s tardiness in signing off on financial aid for Greece is costing the stricken euro-area country billions of euros in extra interest, said an independent economic adviser to Chancellor Angela Merkel.
Dec. 6 (Bloomberg) -- Bloomberg's Jeremy Kahn talks about his profile of German Economist Peter Bofinger and the European Redemption Pact proposal which, Bofinger believes, can save the euro. This report is a featured article in the January issue of Bloomberg Markets magazine. (Source: Bloomberg)
The economic development in the euro region will be “very unfavorable” this year, Passauer Neue Presse said, citing an interview with Peter Bofinger, a member of Chancellor Angela Merkel’s council of economic advisers.