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Buiter was asked for his views on the stability of the euro as a viable currency; the likelihood of a Greek default; and whether European banks need recapitalisation in order to deal with the crisis. Among Buiter's views was that Germany was the only G7 country to have an “honest triple-A rating”. His words came as Moody's Investors Service said on Tuesday that the stable outlook on France’s prized triple-A credit rating was under pressure.
Buiter said the EFSF at the moment was akin to a "peashooter" and would need to be beefed up. On the potential exit of Greece from the eurozone, and possibly the European Union as a whole, Buiter told the Lords that “exit contagion” could ensue, bringing about a financial crisis. He said: “I very much hope that Greece will be restructured inside the euro area. Leaving the euro area would be a catastrophe for Greece and very dangerous for the remaining euro area members.”
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