Bloomberg News

Greece May Need Special Currency to Adjust, Belka Tells FTD

March 29, 2012

Greece may need a special currency arrangement within the euro region to adjust its economy, Polish central bank Governor Marek Belka told Financial Times Deutschland in an interview.

“I’m not advocating forcing Greece out of the euro,” Belka told the German newspaper. “But for internal purposes, one could think about a payment instrument that would be used within the country, especially by the public sector.”

Savings collected before the introduction of the system would be managed in euros, while wages and salaries would be paid out in a devalued currency, Belka said. Such an “indirect devaluation” could improve the competitiveness of the Greek economy, while relying on lowering prices and wages is a “hopeless” strategy, he was quoted as saying.

To contact the reporter on this story: Jana Randow in Frankfurt at jrandow@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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