‘Not a bad thing’ if Greece leaves the euro – Warren Buffett
Warren Buffett says he thought the euro had “structural problems” from its inception.
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Billionaire investor Warren Buffett has told US media that it may not be a bad thing for the eurozone if Greece abandoned the euro.
Mr Buffett says he thought the euro had “structural problems” from its inception.
When asked by a reporter if it could potentially be a good thing if the Greeks leave the eurozone, Mr Buffett says it could be a good idea in several ways, as it would mean everyone would learn that rules actually means something.
“If it turns out that the Greeks leave, that may not be a bad thing for the euro.”
Greece is still very much the black sheep of the eurozone.
The recently elected Greek government continues to face pressure from its Eurozone creditors over economic reform strategies and fiscal management.
Despite efforts across the past few months to better manage its economy, scepticism still remains.
This week, the Greek interior minister told a German news magazine that Greece might not meet the €450m loan repayment due to the IMF next week.
Despite looming questions marks over the future of the Greeks, Mr Buffett says the euro is not dead.
“Over time, the countries in the eurozone will have to have somewhat compatible labour laws, fiscal deficits, and general management of their economies that don’t result in outliers that really aren’t playing the game the way the rules are supposed to be.”
He says the Germans are not going to keep funding the Greeks forever.
If the Greeks are forced out of the eurozone, it is predicted Greece’s old currency the drachma would be reinstated.
Jason Walls
Thu, 02 Apr 2015
Thu, 02 Apr 2015
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‘Not a bad thing’ if Greece leaves the euro – Warren Buffett
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