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Category Archives: ES GR Articles And Blogs

Greece: the useless compromise

Greece: the useless compromise

The arm wrestling between Athens and its international creditors seems likely to lead to yet another compromise. While some see this optimistically, it is time to shout loud and clear that this is an agreement that is unlikely to solve anything. Particularly not Greece’s real, underlying problems, which are huge and have to do with solvency, not liquidity. To tackle Greece’s real problem we need to address the real issue: the lack of a plan for investments that more

Europe should do what Germany does, not what it says it does!

Europe should do what Germany does, not what it says it does!

We often hear that the problem in Europe is that there is a monetary union with no fiscal union and that this cannot work, has not worked and is the origin of the current fiscal crisis in the Eurozone. What is usually meant by this is that some countries were allowed to spend too much (i.e. were fiscally irresponsible), which got them into trouble with high debt/GDP ratios, while others were more ‘prudent’ (i.e. fiscally responsible), more

The Eurozone needs less voodoo economics: more vision and more strategy

The Eurozone needs less voodoo economics: more vision and more strategy

Why should the deficit be under 3%? Why not 1%, 2%, 4% or even 10%? Is this number perhaps just … taken out of thin air? Italy had a low deficit before the crisis but its debt/gdp ratio continued to grow. That should have made us realize that the deficit in and of itself is not the problem. Yet today all the attention is on that magic—voodoo like—number. more

EU (skewed) competitiveness: A different analysis

EU (skewed) competitiveness: A different analysis

“So the big question is: will the different types of ‘structural reforms’ and spending cuts induce growth in the periphery, the PIIGS? My answer is that, without investment in key areas, NO they won’t.” more