The debt mutualisation debate should reopen in the form of a Eurobond issue and the EU should distant itself from the harsh austerity doctrine that has dominated during the last few years, Konstantinos Michalos, head of the Central Association of Chambers and the Athens Chamber of Commerce and Industry, said on Monday.

“We should focus on in the coming years so as to have a Single Market that supports reforms aimed at growth and the generation of jobs”, Michalos said during a conference organized by the Finance Ministry and the European Commission entitled “Is Single Market set to New Growth?”

Each policy, as part of the Single Market, should aim for the final exit from the recession and the stagnation, the revitalisation of the periphery’s economies and the dealing with unemployment, Michalos said and added: “The achievement of such a goal presupposes a daring turn to growth policies, as well as more effective use of the European Central Bank role.”

“The implementation of a more expansionist policy in the Eurozone is a one-way direction, with interest rates cuts and measures to enhance liquidity,” the head of Central Association of Chambers underlined. He also said that plans for quantitative easing movements should be put forward, with securities purchase programmes on the secondary market.

Regarding the mutualisation of debt within the Eurozone, in the form of a Eurobond issue, Michalos said this was related to the support of small and medium-sized enterprises.
“It takes specifically planned measures of enhancement. There is a need for adequate and innovative investment funding mechanisms to develop smart infrastructure and adopt innovations…Improving access to European funding is an area which special emphasis should be given to, while there should be a consultation with the ECB to achieve simplification of lending procedures through banks, including the approval of guarantees.”