'Stark choice' for Eurozone members

Malcolm Sawyer, Professor of Economics at Leeds University Business School, believes that countries such as Greece, Spain, Portugal and Ireland will have to find ways of restoring their competitiveness, but that will prove exceedingly difficult unless they can in effect devalue their currency – but that cannot be done while they retain the euro.

All four are struggling to tackle enormous deficits and rein-in public spending but the strength of the euro makes it difficult for them to export goods competitively while they also face having to introduce austerity measures to strive to meet the requirements of the Stability and Growth Pact.

Professor Sawyer will argue that the fiscal policies of the eurozone as currently dictated by the Stability and Growth Pact must be radically altered with new fiscal policies being introduced which would enable it to support rather than punish countries whose economies are struggling.

He will deliver the keynote lecture during Economics Week at Leeds University Business School.