Greece's debt crisis is not just the result of national shortcomings but a structural problem, leftist opposition leader Alexis Tsipras has said warning that tight fiscal policies could lead to a global economic recession.
“[The crisis] is not a problem of Greece, Italy or Spain, but a structural problem,” Tsipras said in an interview with Italian newspaper La Stampa.
“If we understand this, we will also understand that we should deal with it in a political way and render Europe more democratic: 27 member states are discussing, but it is [German Chancellor Angela] Merkel who makes the decisions,” said Tsipras during a weekend visit to Italy for the Forum of Como.
In the same interview, the SYRIZA chief also slammed German-inspired austerity policies imposed on debt-hit countries of the euro area.
“Tight fiscal policies and austerity are not just wrong, they are dangerous. After five years the crisis has deepened. And now we face the risk of a global economic recession, Tsipras said.
“GDP fell by 25 percent in 4 years, the unemployment rate is at 28 percent and public debt went up from 126 percent to 175 percent. This is unacceptable for a European country,” he said.
“No country can have a debt that is almost twice its GDP, because the repayment of interest rates eliminates any chances of growth,” he said.