El-Erian (PIMCO): "Some countries should abandon the euro to ensure its survival"

22.08.2011 13:03 h

The sovereign debt crisis in Europe has existed for more than fifteen months and the division among politicians on their solution remains clear. Given that the bailouts and buying bonds have not achieved anything yet, Mohamed El-Erian, Pimco CEO-largest bond fund in the world, considering that some countries should abandon monetary union in order to ensure the survival of the euro .

El-Erian believes he should look for a "Eurozone smaller and better integrated, a eurozone fiscal strength" and criticizes the continuing messages by European leaders of his commitment to the euro. The fact that you are debating whether some members should leave the single currency is already a symptom of the failure of politicians to control the crisis.

Pimco CEO is not alone in thinking that some countries should abandon the euro. Professor of Economics at Harvard University, Martin Feldstein, argues that "although Germany and other countries willing to pay to avoid the default of some of its neighbors are not going to solve the long-term problems of Greece, Portugal and other countries with high fiscal deficits and unable to be competitive without devaluing their currencies. "

Until now, the debt crisis Europe has cost 365,000 million euros in ransom, Greece, Ireland and Portugal and 96,000 million from the European Central Bank for the purchase of bonds.