Ifo’s Sinn Urges Debt Cut to End Southern Europe’s Crisis

Southern euro-region countries need debt relief to revive economic growth and creditors should pay the cost, said Hans-Werner Sinn, head of the German-based Ifo economic institute.

The Asian financial crisis that started in 1997 was resolved with debt forgiveness rather than by drawing on taxpayers’ money, providing a model that European policy makers should use, Sinn said in an interview.