Greece’s structural problems may take up to 10 years to fix and the country may need assistance from the World Bank to make needed adjustments, former European Central Bank Executive Board Member Lorenzo Bini Smaghi said.
“I think what needs to be done is to have a longer term perspective,” Bini Smaghi said in an interview with Dublin-based RTE. “Greece will not be solved in one or two years, it will take maybe 10 years.”
Greece’s bailout can’t be renegotiated and the country must continue with adjustments to lower its wage level to be competitive, Bini Smaghi said. European leaders needs to commit to taking political action to resolve the European debt crisis and not leave it to European Central Bank, he said.
Eurobonds aren’t a “panacea” for the crisis and any shift to them will be gradual and dependent on the ratification of the fiscal compact, he said.