On 12thJune 2012, in an interview famous economist Nouriel Roubini said that rather than hike in continuing savings and insisting on austerity,Europe should lower the taxes and increase salaries to boost the growth. The government should provide incentives for holiday to its citizens in the south countries of Europe which were affected through the debt crisis to help those states recover.
Roubini and Europe
Few leaders in major countries of Europe have already shifted their rhetoric from austerity to growth, as the tax increases and cuts in government spending have exacerbated the economic downturn which causes the deep recessions in some euro zones countries. But Still Germany insist on austerity as a way for take control the budget. Robini Further told, the madness of saving money must be stopped. The government should lower its taxes and increase wages.
The Government of Germany should provide 1000 euro travel voucher to every household of country. Even it should only the use of holidays which will help in boost growth there. Further, every person who purchase the holiday home in southern state of Europe should get a tax bonus Roubini told.
Bank of Europe
Roubini warned, pulling the plug on funding Greece that already been bailed out twice, would lead to the collapse of the single currency, According to him, euro zone had two choices the first one is providing funding to facilitate an orderly exit by Greece or keep the Balkan country in the single currency by financing it in the same manner as West Germany supported the East after unification in 1990. The second option would be cheaper in the long term for the German taxpayer than allowing the euro zone to break up. The bank of Europe should spread out the money supply massively in order to diminish the euro, ideally to parity with US dollar to give Greece, Italy and Spain a real chance to become in competitive.