Mirtchev, A. (2010, May 5). The European Debt Crisis – Dominant State Intervention Need Not Preclude Market-oriented Exit Strategies, But One Should Not Hold One’s Breath. CNBC News.
Dr. Alexander Mirtchev, President of Krull Corp., in an interview withCNBC, emphasized that measures considered and applied in dealing with the European debt crisis are exacerbating market uncertainties and impacting global economic security, in particular due to addressing the crisis as liquidity rather than a solvency problem. Mirtchev indicated that the measures put forward in response to the concerns over Greece, Ireland, Portugal, Spain, Belgium, Hungary, etc. aim more to “put off” the sovereign debt issues arising in the wake of the global economic crisis, rather than resolve them. The recovery measures put in place by the leading EU economies have had a particularly pronounced impact on state balance sheets. Moreover, Mirtchev stressed that there are no fundamental reasons which prevent a practical and viable market-oriented exit strategy from the government intervention in the markets that could further alleviate outstanding sovereign debt burdens. Such a strategy would entail debt restructuring, enacting policies which genuinely support economic growth, innovation and competitiveness and, in general, reshaping the currently unsustainable broader economic arrangements. Inevitably, such a set of measures will prove painful and unpopular, and will therefore depend on the leadership and political resilience of the major EU member-states, in particular Germany. However, other approaches would only deepen and extend the global impact of the European debt crisis, putting sustainable recovery further and further into the future.