German Economist Starbatty Encourages, Greeks Should Vote ‘No’ in Referendum

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German Economist Starbatty Encourages, Greeks Should Vote ‘No’ in Referendum

July 2, 2015 (EIRNS)—While EU Commission Führer Jean-Claude Juncker violates his mandate by telling Greeks how they should vote in the July 5 referendum, prominent friends of Greece argue in favor of a "No." Among these is German economist Joachim Starbatty, a veteran fighter of constitutional battles against the euro, who wrote an op-ed published in the Swiss financial daily Neue Zürcher Zeitung today.

Starbatty says that the Greeks should vote "No," that Greece should be let out of the euro, its government and private debt should be cut 80%, and that it should receive financial aid aimed at supporting the real economy and not the banks.

Politicians in Brussels and other European countries claim that they want to keep Greece in the euro, "but they do not care about the well-being of Greece," he wrote. They fear that Greece will be the first domino. "Politicians in creditor countries insist on the doom-laden austerity policy because otherwise they have to admit the failure of Angela Merkel's policy.

"In the coming referendum, the Greek people face the following choice: Regaining autonomy of economic policy and national dignity, or continuing the destructive austerity policy. But they have only one possibility to put an end to their suffering: They must vote 'No' "

A "No" vote will lead to Grexit, Starbatty says, but not to Greece's bankruptcy—in fact, Greece has been bankrupt at least since 2010.

However, after an exit from the euro, "a debt cut can and must be negotiated, concerning government as well as private debt. Nobody can predict with certainty the result of such negotiations. We must talk about interest rates, maturities and collateral. But a debt cut of about 80% is in the realm of possibility for Greece."

Greece needs also financial aid, to help purchase imports. "So far, European money went mostly to bail out banks; after the exit, European solidarity must benefit the Greek people. A kickstart is also necessary to accelerate the recovery."