According to European Central Bank policymaker Bini Smaghi, debt restructuring by euro zone will be very dangerous and will affect the nations.

"Default or debt restructuring is a dramatic economic and social event for the country which experiences it - I would call it political "suicide" -- which leads many into poverty, as experience has shown", Bini Smaghi said in the text of a speech to be given in Florence, Italy.

Bini Smaghi said that any sort of restructuring will cause huge harm to the countries and in turn euro zone will lose its reputation.

This restructuring will never help and things can only be changed if the policies are liberalized. According to him, a leniency in liberalization and a change in the exchange rate policy will be very helpful.

The policy makers should take the responsibility in order to strengthen the economy so that the entire economic growth is possible.

The economic growth can be uplifted by implementing single market policy. He said that the financial sector should work in harmony to each other and thus, the entire economic growth can be achieved. This will make the euro zone network strong.