BUITER: The Cyprus Deal Is The Best Thing That's Happened For Europe In Years
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Citi chief economist Willem Buiter has been one of the skeptics towards official policy over the course of the Eurozone crisis.
Ever since ECB President Mario Draghi put markets to bed for an extended rest in July with his "whatever it takes to save the euro" speech, Buiter has been pointing out the shortcomings that still remain in the euro area, explaining why it's not really been fixed.
Interestingly, though, the Cyprus bailout deal that has seemingly out of nowhere created a political firestorm in Europe this weekend is actually "qualified good news," according to Buiter.
In a note today titled "The euro area recovery starts with Cyprus," Buiter explains why.
Despite all of the criticism of European politicians' choice to force depositors to take a haircut as part of the bank bailout – an unprecedented move in the euro area, where deposits were formerly viewed as sacrosanct – Buiter thinks this is a good sign.
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