Thursday 12 December 2013 9:25 pm

Nobel winner calls for euro to reform or die

NOBEL Prize-winning economist Sir Christopher Pissarides yesterday called on policymakers to dismantle the euro if they are not willing to take the radical steps necessary to bring the currency union to health. Despite being an early advocate for the Eurozone, Pissarides said that national governments should commit to a major fiscal stimulus and abandon austere budgets, or scrap the monetary project entirely. “The policies pursued now to steady the euro are costing Europe jobs and they are creating a lost generation of educated young people. This is not what the founding fathers promised,” added the professor, who shared the Nobel Prize in 2010. Pissarides was speaking as the first regius professor of economics at the London School of Economics.