Roubini Condemns 'Fatal' German Austerity

The enthusiasm for Germany's economic growthis overdone and the country's savings plan is "fatal," Noriel Roubini, economist and chairman of Roubini Global Economics told a Germany magazine.

"The German economy is nowhere near pre-crisis levels yet," Roubini told Capital on Monday. "The current growth rate may look good on paper, but that is mainly a statistical effect."

Germany can currently borrow money cheaper than ever and German Chancellor Angela Merkel should take advantage of this and only start consolidating once the rest of Europe is in better shape, Roubini said.

The switch to “savings mode” at that point would still slow growth, but at least it would prevent “an emergency stop without a safety belt,” he said.

Roubini also said he saw considerable risks to the economy, even if Greece sticks with its tough program.

“The slightest external shock suffices for the Greek debt issue to become unmanageable,” Roubini said. “That is why I am not asking you if Greece will go bankrupt, but when?”