“Portugal should leave the euro so it can grow, create jobs and reduce its debt,” according to Nobel economist Joseph Stiglitz.
Stiglitz was interviewed at length on Portugal's Antena 1 radio station and concluded that if Portugal stays in the eurozone single currency it will always have difficulties.
"I think Europe as a whole should start thinking about an amicable divorce with some countries which should think of ways of leaving. It will be a difficult process.
“It will cost Portugal more to stay in, than leave the euro," said economist in an interview broadcast on Monday September 4th.
If Portugal remains in the single currency she "is doomed", as Europe "does not have, nor will have political conditions to make the necessary changes" and, as such, the economist advises the Portuguese to leave the euro.
"I think it is increasingly clear that staying is more costly than leaving," noting that the idea of staying is based on the hope that Germany will adopt a softer position.
However, Stiglitz clarified that the austerity policies prescribed by the Germans "will continue even if economic theory and the International Monetary Fund's actions demonstrate clearly that austerity will never work."
The economist noted that the exit from the euro would give Portugal conditions to "grow, create jobs and start a debt restructuring process."
Joseph Stiglitz is a professor at Columbia University in New York and was awarded the Nobel Prize in Economics in 2001.
Parts of the radio interview in Portuguese and English are at:
