FRANKFURT (MNI) – The Greek crisis is the fault of the single
currency system, which fails to allow the troubled southern European
country to devalue its exchange rate, the president of the Czech
Republic, Vaclav Klaus said in an interview pre-released Tuesday.

As regards to economic growth and stability, the Eurozone has been
dead for a long time, but given the large amount of political capital
invested in the union, its politicians will never let it collapse
formally, the Czech president told Germany’s Frankfurter Allgemeine

Klaus argued that the “clear solidarity” that existed among Germans
after that country’s re-unification is not there as regards Greece.

“In Germany there is a difference between the positions of the
Chancellor and the Finance Minister” on the Greece issue, he pointed

He urged resistance against transferring German tax money to
Greece. Furthermore, he expressed doubt as to whether the statute of the
International Monetary Fund really allows it to help Greece financially
in the current crisis, saying that in his opinion, the IMF is only
allowed to intervene to help address balance of payments deficits and
unexpected exchange rate fluctuations.

It is the “euro that has caused this tragedy,” Klaus claimed.
Without the single currency, the Greek government could have coped with
the crisis by having a 40% devaluation of its currency, but in a
currency union this is not possible, he reminded.

“Then, there is only one solution, namely the transfer of tax money
from other countries of the currency union,” he said.

The Czech Republic, which is contractually obliged to eventually
join the Eurozone, has benefited “without a doubt” from not being a
member of the single currency, Klaus said.

The president, whose euro-skeptic beliefs are well-known, said that
he feared the crisis was being used as a pretense “for even more
Europeanization” and “unification.” Indeed, the “freedom and prosperity”
of Europe is already under threat, he claimed.

–Frankfurt bureau; +49-69-720142;

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