Greek Situation Still Unsolved, Buffet Thinks That Greece Leaving The Eurozone Doesn’t Have To Be A Bad Thing
The Euro could profit from Greece leaving the Eurozone, claimed the renowned investor Warren Buffet on Tuesday.
Buffet said it wouldn’t have to be so bad, and that “it could be a good idea (in) several ways if everybody learns that the rules mean something.” “If it turns out that the Greeks leave, that may not be a bad thing for the euro,” Buffet concluded. He added that it is not set in stone, that 19 countries must make the Eurozone, and that the most important thing for the Eurozone is good management.
The only thing that has to be firmly regulated was that “Over time the countries in the Eurozone have to have somewhat compatible labor laws, fiscal deficits, general management of their economy that don’t result in outliers that really aren’t playing the game the way the rules are supposed to be and we may find out very soon about Greece,” he said.
The comments from the chairman of Berkshire Hathaway come in the moment when official Athens is still struggling to reach an agreement with the investors. The creditors rejected the latest Greek reforms proposal on Monday, leaving the last tranche if bailout money unreachable for the Greek government. The bailout program was given an extra four months in February, but the European Central Bank, the European Commission and the International Monetary Fund are still not satisfied with the proposed set of reforms in Greece. If the agreement isn’t reached by April 20, Greece is predicted to run out of money.
Even though their proposal was rejected by the investors, Greece is still confident that the agreement will be reached, according to Giorgos Stathakis, the Greek Minister of Economy. Stathakis expects the negotiations to be successfully completed in the next seven days.