PIMCO's El Erian: EU Fumbling Greek Debt Crisis

Mohammed El-Erian, head of PIMCO, the largest bond fund in the world, said in a Sunday interview that the European Union (EU) must change its approach to the Greek debt crisis or risk spending billions for nothing.

According to Reuters, El-Erian (left), in an interview that appeared Sunday in an Italian newspaper, Corriere della Sera, said that Europe was risking billions by simply propping up the Greek economy without changing its method. “After a year, every indicator has unfortunately worsened, despite the incredible quantity of financial assistance,” he was quoted saying.

"All of this has terrible human consequences and it's associated with a transfer of liabilities from private creditors to European taxpayers. Why? Very little is being done to deal with the excess of public debt, and the conditions for higher growth are not being put in place," he said. "Further on, if this approach is kept up, more money will be wasted to save private creditors and the risk of a disorderly restructuring of the debt will be greater."