‘Greece needs to undergo a profound devaluation as do other European economies. The trillion LTRO saved a near bank failure but the fundamentals stay the same. I suspect Greece will leave in the next 12 months,' said Burgess.
‘An uprising in nationalism is disappointing but understandable. It reflects how much the living standards are going down in Europe,’ said Burgess.
Austerity measures in Europe’s most-indebted economies have caused a chain of protests that started the year in Athens. Spain’s labour market reforms, introduced at the end of last month, caused public unrest in Madrid.
In an ongoing debate between the German central bank and the European Central Bank, many commentators have called for further liquidity measures despite March figures reporting consumer prices at 2.7% higher than the same time last year.