Debt problems in the United States and Europe are the biggest risk to the global economy in 2013, assessed Nobel laureate Joseph Stiglitz on Wednesday.
– In the forecast for 2013, the biggest risks to the global economy are found in the United States and Europe, Stiglitz wrote in a column for the business daily Handelsblatt. However, ‘the real risk to the global economy is in Europe,’ he warned.
– Spain and Greece are in economic depression with no hope of recovery. The ‘fiscal pact’ of the eurozone is not a solution, and the decision of the European Central Bank to purchase government bonds is at best only a temporary half-solution, he emphasized. He believes that the ECB should not impose further conditions for financial assistance to countries.
– Otherwise, the remedy will cause a deterioration in the patient’s condition, he warned.
