Der Crash Kommt author wills Greece to 'teach markets a lesson'

Greece should leave the common currency to escape ‘dictatorship’ from Brussels and teach the markets a lesson, says Professor Max Otte, author and forewarner of the credit crunch.

‘The political class will keep Greece in the euro, however I would recommend Greece to leave,’ says Otte, author of Der Crash Kommt (‘The Crash is Coming’) written in 2006.

'Greece could then set its own economic and monetary policy. There has been much talk of dictatorship from Brussels within Greece.’

The most-indebted eurozone member is under increased pressure to implement austerity measures after leaders agreed the country would receive its second bailout package, totalling €100 billion.

Greece leaving the euro area would provide ‘a lesson for the markets’, says Otte. ‘Capital markets would then know it doesn’t pay to speculate.’

The plan agreed by the European leaders to resolve Europe’s debt crisis ‘could have been much worse’, said Otte.

‘What I am not happy with is the lever from EFSF. The larger the lever the more time for reforms but I’m not sure that we know what this means yet.’

‘What is certain is that we will find ourselves in the same position with Greece in the next two to three years.’