Euro-Area ‘Linchpin’ Departs as Bloc Seeks to Start New Chapter
- EWG President Thomas Wieser to leave his post on Jan. 31
- Wieser among key participants in euro-area crisis negotiations
This article is for subscribers only.
In February 2015, shortly after Greece’s new anti-bailout government swept to power with promises of ending austerity, a little-known European official flew to Athens on a secret trip to deliver a message, the ramifications of which continue to reverberate today.
Sitting down with a small group of government ministers, the Austrian economist spelled out the consequences of Greece defaulting on its loans. First, the country would be cut off from the international funds needed to pay salaries and pensions. As capital flight ensued, banks would collapse and the economy would follow. His audience, however, wasn’t convinced, until his prophesies were all but realized six months later.