Greek program won’t succeed with tough austerity, says former IMF chief economist Blanchard


Greece's latest rescue program won't succeed if the country is burdened with more harsh austerity, Olivier Blanchard, who has just stepped down as chief economist of the International Monetary Fund, said on Wednesday.

"The fiscal consolidation asked of Greece in the next few years, is much smaller than it used to be, but still is more than is right," Blanchard said during a question and answer session at the Cass Business School.

"You need structural reforms and growth or you do things half way (with more austerity), in which case I think the Greek program may not succeed."