The New York University professor was speaking at a
conference organised by IG Metall, Germany's biggest trade union, in Berlin.
He said that the Eurozone was not paying enough attention to
job creation and GDP growth, because it was too focused on austerity.
"If I had to propose policies that change that historic
road I would say we have to postpone the fiscal austerity in the periphery and
do it more gradual, slower rather than faster. In countries like Germany where
there is fiscal space instead of doing fiscal austerity now you have to
postpone it and you have to do fiscal stimulus," he said.
Roubini went onto say that the fiscal compact will lead to
weaker economic growth and deepen recession in the Euro area in 2013.
"And unless we restore that economic growth eventually
this crisis is going to get worse and we will have a break up of the
Eurozone," he said, "and unfortunately those who are resisting the
most, those stimulative policies come in the core of the Eurozone and come in
the government of Germany - this resisting policy that would try to restore job
creation and job growth in the periphery of Eurozone. So unless we do that
eventually the crisis could get worse rather than get better."
at http://www.roubiniblog.com/2015/08/nouriel-roubini-predicts-break-up-of.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NourielRoubiniBlog+%28Nouriel+Roubini+Blog%29
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