Paul Krugman: Strict austerity policies must end for Greece

The famous economist argued that a primary surplus must now be achieved through structural reforms, not new austerity measures.

Renowned economist and columnist Paul Krugman who won the Nobel prize for Economics in 2008 stressed once again the need to end to strict austerity policies imposed on Greece, during a press conference in Athens on Saturday.

Following his lecture at the Athens Concert Hall on Friday night, Krugman urged the government to remain firm in its convictions with regard to austerity measures.

Noting that Greece has made huge sacrifices in the last five years, the famous economist argued that a primary surplus must now be achieved through structural reforms, not new austerity measures.

Moreover, he said the Greek economy had shown progress but disputed that this was the result of fiscal austerity. With regard to the negotiations between Greece and its creditors, he said that the lenders wanted Greece to make some concessions so that they can proceed to make an agreement.