Former U.S. Treasury Secretary Henry Paulson said he expects Greece and other euro-area nations to reach a deal on the country’s bailout that will keep it in the currency bloc.
“I just assume, maybe I’m looking at it naively from the other side of the Atlantic, that somehow or other people will figure out how to keep Greece as part of the euro,” he said in an interview on Bloomberg Television on Monday.
Greece is in talks with creditors on reforms needed to unlock more aid as it tries to avoid a default. Finance Minister Yanis Varoufakis is meeting with euro-area counterparts in Brussels on Monday and said he expects to establish a “good paving stone” toward a deal on funds.
Paulson also said that Greece is just one problem facing the 19-nation region. Echoing comments repeatedly voiced by European Central Bank Mario Draghi, he said the ECB is doing all it can to protect the recovery, and governments need to do more.
“To me the problem is the fundamental structural flaws in Europe,” he said. “Mario Draghi is a hero, as far as I’m concerned, but monetary policy will only do so much, and again the key to Europe is to stepping up on some of the structural issues and dealing with the labor reforms, some of the more fundamental things that need to be done.”