January 31, 2011
This year, the crisis is different. With these words Gikas Hardouvelis, professor at the University of Piraeus and Chief Economist and Head of Research in Eurobank EFG Group begins his interview for “Politika“.
From the original financial crisis of the US and Western Europe and the subsequent global recession and instability, the crisis is now transformed into Euro Area crisis, he explains. After a decade of relative calm and prosperity in the Euro Area, member states are facing the first real test of their cohesion.
There is a battle between the market and politicians, who try to resist the disintegrating forces of the markets. As Hardouvelis predicts, in Europe a process of wider fiscal federation is awaiting us. In the world, a more stable economic growth with higher interest rates, and more regulatory restrictions on the financial sector. Therefore, a decade of slower but more stable growth is ahead of us.