SUBSCRIBERS

Eurozone urged to drop debt-fuelled growth model

Ultra-low short and long-term interest rates have caused speculation which could lead to another crash, warns BIS

Published Sun, Jul 26, 2015 · 09:50 PM

London

THE eurozone's massive debt burden continues to weigh on the region's growth and the Greece debacle is a warning of further dangers ahead.

Jaime Caruana, general manager of The Bank For International Settlements (BIS), warned recently that the European Central Bank (ECB) and other central banks should "abandon the debt-fuelled growth model that has acted as a political and social substitute for productivity-enhancing reforms".

Indeed, the ECB, which continues to pump emergency money into Gre…