In an interview with Skai, Alan Greenspan, former chairman of the Federal Reserve, expressed deep concerns about the debt crisis in the euro zone and said that Greece should never have been allowed to enter the bloc.
?Greece should never have been accepted as a member of the euro zone,? Greenspan told Skai on the sidelines of a conference by The Economist in New York, echoing comments made to delegates.
He added that the debt restructuring being faced by many European countries was the ?only discernible solution» for them to emerge from the crisis.
As for the euro zone crisis in general, Greenspan said the situation was ?extremely critical,? noting that no one could predict what will happen in the future.
As long as there are countries in Europe with a large public debt ?Europe will have no future,? he said, adding that what is needed is a stronger political union which will curb the divergent behavior of other member states.
In conclusion, Greenspan called for an ?essential fiscal unification of Europe? and stressed that the threat posed by an unstable Europe to the American economy was ?extremely dangerous? and that those who overlook this are not being realistic.