There’s an interview with Nouriel Roubini in the latest edition of Bild, the populist German newspaper, which has generally been a force of opposition towards bailouts and ECB activism.In it, Roubini explains why Germany needs the euro to survive (via Google Translate):
“Without the euro, Germany would be compared to the U.S. or China is an economic and a political dwarf. As an export nation, Germany needs the euro and European countries as trading partners. Therefore: swim together or sink together. “
And as for his solution…
BILD: Is not it better to save than to flood the market with money?
Roubini: “No! The savings madness must stop. Governments need to reduce taxes and increase wages. Europe needs growth. The German government should give every German household € a 1000 travel voucher. The may also be spent only on holiday in the crisis countries. This will boost the local economy. In addition, everyone should get a tax bonus, which is buying a vacation home in the southern countries. “
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