European Central Bank Chief Economist Juergen Stark claimed in the interview to German TV station ZDF that debt restructuring euro area member state may lead to more severe consequences than those of the Lehman Brothers bankruptcy that market 2008 crisis. In his view, such move would result in new banking crisis failing to solve the budget and structural problems in individual nations.
According to Stark, the county that restructures its debt risks being thrown out of capital markets and foreign financing for an unforeseeable time.
The economist is sure that the only way out for the indebted European economies is to conduct fiscal reforms and fully repay their debts.
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