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The cause of the euro crisis and how to fix it: top economists clash

Leading economists Hans Werner-Sinn and Heiner Flassbeck have presented hugely differing views on the root of and the resolution to the long-running eurozone crisis at Citywire Berlin 2015.

Noted economist Sinn, who is professor of economics and public finance at the University of Munich and president of the Ifo Institute, pinned the blame on lack of competition in Southern Europe, which would need to be strongly addressed to avoid stagnation.

Meanwhile, former German deputy finance minister Flassbeck, who had earlier convinced attendees that Germany sat at the crux of the region’s woes, said unit labour costs were hugely problematic and, one again, it was Germany which needed to change tack.

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