ssing: It was important to help Greece in its acute crisis to prevent it from spreading to other countries. But as soon as the other countries are out of danger, the Greek government debt will have to be restructured. This can be done by cutting that debt or by extending the terms of the loans, but there is no getting around a debt restructuring, no matter how you calculate it.
SPIEGEL: Can banks and insurance companies cope with such a measure?
Issing: Lengthening loan periods would be more palatable than a haircut. It will not force the banks to write off their claims. They'll get their money back; it'll just take longer.
SPIEGEL: Even should its debt be restructured, Greece would still struggle for years to pay off its loans. Wouldn't it be better to simply exclude the country from the monetary union?
Issing: Such debates are superfluous because they ignore reality. You need to amend agreements to eject a country. This can only be done unanimously. No "candidate" would agree to it. It's a complete waste of time to even think about it.
SPIEGEL: And what if a country wants to leave the monetary union of its own accord?
Issing: I think that would be political and economic suicide.
SPIEGEL: Does that also apply to Germany?
Issing: It also applies to Germany, but in a different sense.http://www.spiegel.de/international/spiegel/0,1518,752591,00.html
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