Roubini Says EU, IMF May Save Greece

Nouriel Roubini projects that the European Union or the International Monetary Fund will probably offer financial assistance to Greece so that it will avoid default.

“I expect there is going to be eventually some financial support,” Roubini said in a Bloomberg Television interview in Moscow today. That support will come “either directly from the European Union or the ECB or, as I suggest, Greece should be going to IMF to get an IMF package,” he said.

Meanwhile, Greece should adopt a “credible fiscal plan heavy on spending cuts that government can control,” rather than tax hikes and loophole closures that depend on “historically weak compliance,” Roubini and Arnab Das, of Roubini Global Economics, wrote in the Financial Times today.

“Failure to take the tough decisions necessary would draw attention to an uncomfortable historical truth: that no currency union has survived without a fiscal and political union,” Roubini and Arnab said.