European states should supplement the funds of support mechanism for economies with the euro area financial problems if they are to avoid disintegration of the monetary union, the American economist Nouriel Roubini likes.
Roubini, known for his more pessimistic forecast, believes that several scenarios are true crisis in the euro zone.
“First, ideally, aid granted by the European Fund for failing to address financial stability problems the euro area and to calm investors. In this scenario, in my opinion, would have made more money on the table,” said Roubini.
German Chancellor Angela Merkel reiterated on Friday that the fund of 750 billion, set in the spring has sufficient resources.
The second scenario provides a deeper fiscal integration in the euro area for solving the region’s structural problems.
A third option is to restructure sovereign debt of countries with problems, which will mean that more states to leave the monetary union.
Debt restructuring may be the best solution to reduce pressure on certain countries, said Roubini, who believes that France’s financial situation is as bad as that of Spain or Portugal.