|ECB's Asmussen urges policy 'regime change'|
There is a high risk that the country's adjustment programme derails without a "regime change" in policy implementation and a broader political consensus in favour of painful reforms, European Central Bank board member Joerg Asmussen said on Tuesday.
"It is no secret that the programme is subject to exceptionally high implementation risks," Asmussen told the European Parliament committee on economic and monetary affairs.
"Without a regime-change in policy implementation and a much broader political consensus in favour of painful, but necessary reforms, there is a high risk that the programme derails," the German economist added. "Therefore, political courage is more needed than ever."
His comments came as May 6 emerged as the most likely date for the planned general election.
Asmussen said there was a clear aim to keep Greece in the eurozone and no intention to repeat the experience of private sector involvement (PSI) in debt restructuring seen in Greece.
Greece must devalue internally, he said.
"Yes, the medicine is bitter but the patient can and will recover if he follows the prescription," he said.
"Looking at successful past experiences of fiscal adjustment in other European countries shows that this is not a lost battle." (Reuters)