Greece is currently facing the prospect of bankruptcy, which could threaten the euro. In an interview with Spiegel Online, Peter Bofinger, a prominent economic adviser to the German government, explains why he believes Europe's common currency would survive a Greek collapse and calls for a new global monetary order.

SPIEGEL ONLINE: The European Commission has prescribed a strict program of austerity measure for Greece. The government in Athens needs to cut its budget deficit by 75 percent by 2012, and E.U. aid is not planned. But it is unclear whether Greece will be able to steer its way out of trouble on its own. Is Brussels risking a state bankruptcy?

Peter Bofinger: To the contrary. The tough stance against Greece is the only correct approach. A cash injection from Brussels would have set a dangerous precedent - it would have signaled to other problem countries like Portugal or Spain that when the going gets tough, the European Union will rescue them.

SPIEGEL ONLINE: But isn't that precisely what is needed right now? The financial problems of the southern European members are putting pressure on the entire euro zone. Some of your fellow economists fear a crash would trigger a domino effect and cause a rapid plunge in the value of the euro.

Bofinger: Some of my fellow economists are going too far. Compared to other currency zones, the euro zone is doing a lot better than many claim. The national debts and new state borrowing is lower than in the United States. And in an emergency it could also cope with a Greek bankruptcy. The country produces just 2.6 percent of the euro zone's GDP.

SPIEGEL ONLINE: Still, the loss of faith in the euro would be massive. And regarding national debt, debt within the euro zone is currently about 88 percent of its GDP. You call that figure low?