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Greece needs "fundamental reset" of its economy

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This weekend Greece must take a momentous decision. The Greek parliament must agree the latest austerity deal and somehow sell it to a now openly despairing public or risk defaulting.

Mohamed El-Erian, CEO of Pimco, which runs the world's largest bond fund, says the stakes are huge for Greece this weekend.

The challenge, he says, is to reconcile both dynamics. Greece, its European partners and the IMF have been stuck in "active inertia", he believes.

Greece needs a "fundamental reset" of its economy and finances, Mr El-Erian tells Today presenter Justin Webb and should take a "sabbatical" from the euro. There is no pain-free solution for Greece, he adds.


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