DW-TV: To talk about the options open to Greece, the director of the Cologne institute for economic research joins us, Michael Hüther. Tell us firstly, the ECB says restructuring Greece's debt would exacerbate the crisis. Why is that?
Michael Hüther: For the time being they are saying that it will have a very strong impact on the banking system in Europe and the banks are still too weak to manage this. But I think in the medium term it's unavoidable because Greece will manage a primary surplus in their budget of about 5 to 6 percent. That is unrealistic so there will be a need for restructuring but maybe in 2013. It's a little bit time we have.
DW-TV: Well, let's take a look at the debt levels across Europe. Greece has the highest level at the moment. That's no surprise of course. It's followed by Italy. You can also see there on the graph coming up Ireland and Portugal. Both of those countries are being bailed out too. But the coming weeks are going to be telling, as eurozone leaders decide on exactly what to do with Greece. What do you think Greece wants to do itself? I mean there have been rumors that it could abandon the euro.
Michael Hüther: I don't think it's a good idea for Greece to leave the monetary union, because what of the advantage for Greece? It will have the chance to manage currency and exchange rate, but in fact it's the country with the very weak competitiveness of the industrial sector. It's true for decades. So, what they need is a restructuring of the public sector and it's better to do it as a partner inside the European monetary union and to have assistance from the European institution and the IMF as well. So I think even for Greece and the Greek government it's a better idea to stay in the monetary union.
DW-TV: Do you think that these rumors, the rumor mongering could have been a maneuver for the Greek government to try to get a new cash injection?
Michael Hüther: I don't think so. It was a little bit strange management of the last weekend. A secret meeting in Luxembourg and nobody knows what the content of that was, so I think sometimes you have such a movement in the markets and it's not a good idea to use this for tactical or strategic idea.
DW-TV: Well, on that topic, what's this renewed strain doing to the credibility of the eurozone and its currency?
Michael Hüther: The best is that the ECB looks on the price stability, that's the core responsibility for the central bank and there was very successful in the first decade. The second it that we will improve the institutions and we did in the decisions in March. So I'm a little bit more optimistic than most of my colleagues. The medium term future of the European monetary union, it's Greece with about three percent of GDP of the overall Europe, so it doesn't matter so much, in fact.
DW-TV: Mr. Hüther, let’s talk about another hot topic. The debate on green energy puts Germans in a bit of a predicament. Is there a solution?
Michael Hüther: There is a solution, but there is not a one-fits-all solution. We need a widespread mix of instruments from renewable energies, quite clear, but also the traditional power plants and the new technologies, we see CS, carbon capture storage, and we need a large scale investment in infrastructure, net infrastructure, we need not only German grid but European grid because to manage the different volatility of renewable energies it's best to have a very big region for that.
DW-TV: As far as investment goes in infrastructure and research there is a huge difference in what used to be invested and what's being invested today.
Michael Hüther: Today, for example, in the research for new energy, we invest about 500 million euros and thirty years ago it was 1.5 billion, so in the past we were more aware of the fact that there was a need in research and energy and new ways to produce energy and just now we have a public debate on that and no one is willing to pay the additional euro for that.
DW-TV: Isn't that strange seeing as this topic is such a hot topic right now?
Michael Hüther: It's a little bit strange. The German debate is a real national debate and it's only possible to have this solution in Germany if all the other European partners did different and do it the different way and for example France will stay on nuclear power plants and the Czech Republic as well.
DW-TV: Now, it was the crisis in Japan, of course, that sparked this debate. Since the nuclear disaster there Germany's taken about half of its nuclear reactors offline, but the lights haven't gone out here. How is Germany managing to do it?
Michael Hüther: We manage it, but since the middle of March, the start of the moratorium, we have a net import of energy and until that we were net exporter of energy, so we are, there is room for maneuver but there is no more, there is no way to skip another power plant from our infrastructure and we should be aware that there is a situation, we have a time to discuss on that, and we have a little bit period to debate, but what we need is a medium-term solution and we need starting an investment program in all different kinds of energy environment production.
DW-TV: Well, especially because a lot of that energy that's being imported is nuclear energy from other countries.
Michael Hüther: Some of that. From France, for example and the Czech Republic on the other side and we have now possibility to differentiate between the energy what is imported from outside. So I think, yes, we should have a European debate and we should be aware of the fact that the German debate is a little bit strange sometimes.
DW-TV: Michel Hüther. Thank you very much for coming in and joining us today.