DIW chief against fresh bailout for Greece

Granting Greece a fresh bailout would be a bad idea, Ferdinand Fichtner, head of macroeconomic policy at the German Institute for Economic Research (DIW), said according to reports Thursday, siding instead in favor of a writedown for the debt-wracked country.

“Greece is still insolvent,” Fichtner was quoted as saying Thursday. “So another bailout won’t help them with their debt problems, but a haircut would.”

The DIW chief said that a Greek haircut, which would have to be shouldered by European tax-payers, would be a tough sell for German Chancellor Angela Merkel and other European leaders.