The head of the influential DIW Berlin Institute was quoted this week as saying he predicts a "haircut" of the Greek debt this year, in fact.
Marcel Fratzscher added, nevertheless, that a more "non-threatening" term, such as "restructuring", will be used instead of the politically sensitive "haircut".
His statements were carried in the jungundnaiv.de site, which caters to teenagers and young people on the German-language internet, and often broaches political issues with a lighter, alternative style.
"Often times (bailout) conditions were applied that significantly harmed people ...Mistakes were made on this point," he admitted, while adding:
"...on the other hand, many correct things were done ... it was absolutely correct that loans were extended under the condition that reforms were implemented ...considering that if the economy recovers then people will find work," Fratzscher said, pointing to a significant improvement in previously creaky tax-collection mechanisms in Greece, among others.
DIW is one of the leading economic research institutes and think tanks in Europe.
