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October 5, 2011 GES-Interview with Shumeet Banerji: The Crisis in Europe

“The notion that the eurozone crisis can be contained is simply laughable”, Booz & Company-CEO Shumeet Banerji said at the Global Economic Symposium in Kiel today, Wednesday 5 October 2011.

The head of the global consultancy sees a “serious contagion risk”. He added: ‘”As far as the world is concerned, Greece is dead. This is a solvency problem not a liquidity problem. We are seeing a Lehman moment in Europe. Disorderly default seems to be where we’re heading.”

The problems in Europe don’t stop with the immediate crisis. The Booz & Company-CEO sees the demographics in Europe as one of the driving forces for future economic development: “Europe is aging very fast, but we are trapped in an entitlement philosophy of the sixties of the last century.”

This will damage the performance of the economy, Banerji argues: “Europe is getting progressively less productive. One per cent growth rates in the future would be pretty good.”

The fourth Global Economic Symposium (GES) is being jointly hosted by the Kiel Institute for the World Economy and the Bertelsmann Stiftung, in cooperation with the German National Library of Economics (ZBW) – Leibniz Information Centre for Economics.

Further information can be found at www.global-economic-symposium.org.

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