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Professor: Drop Crisis States from Euro

Professor of Economics Vesa Kanniainen of the University of Helsinki says that eurozone crisis economies should be allowed to go into debt restructuring. Kanniainen adds that Greece and Portugal should be dropped from the common currency.

Vesa Kanniainen
Image: YLE

Interviewed on YLE TV's breakfast chat show on Thursday, he also said that a strong devaluation of the euro as well as the recapitalisation and nationalisation of German, French and Spanish banks are essential moves in this situation.

Only after these measures have been taken would Kanniainen advise giving EU structural support to crisis-stricken countries.

According to the LSE-educated professor, the permanent stability mechanism that is now being established is unfounded and should be abandoned.

The outgoing Finnish Parliament's working group on Portugal is discussing the support package on Thursday morning.

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Sources: YLE

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