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Europes Money Woes
Italy’s Promised Reforms Hit a Wall
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  • Andrew Allison

    As I noted previously, Italy is the primary reason that the EU must be firm with Greece. If the Greeks are permitted to abandon reform and default on their debt, the battle will be lost in the third largest economy in the EU, and if in Italy then in Spain and France, etc. However, “Italy, and some other countries, simply can’t carry out the reforms needed to make the euro work.” is only true in the context of governments who would rather remain in power than do what needs to be done, namely reduce government spending and debt, and increase competitiveness. This is going to be painful but not nearly as painful as the results of putting it off (cf. Greece), and may not be possible for countries in the eurozone, which cannot devalue their currencies.

    • f1b0nacc1

      All correct, but ultimately the Euro is doomed because of it. There is not enough money in the entire EU to bail out the so-called ‘Latin bloc’ (the southern tier of EU states), much less help them through their future problems absent serious reform. Unfortunately for them, the future is a problem that the current generation of politicians and eurocrats simply do not wish to face, and thus are not going to face.
      This will not end well…

      • Andrew Allison

        Tears before bedtime, for sure!

  • Corlyss

    All of the southern EU zone needs a new populace, not necessarily new governments.

    • FriendlyGoat

      Think we can do that here? You know, a new populace in the southern half of the USA zone?

      • Fred

        That’s what I like about you, FG, your open-mindedness and tolerance. Not at all like those bigoted conservatives, especially the ones from the South. Everybody knows those people are all inbred, redneck racists. I can only aspire to your level of perfection in that regard.

      • Tom

        Can do. We’ll swap states with you.

  • Anthony

    “The vast divergence of the European experience is as troubling as the the general economic malaise…The huge unemployment rates in Spain, Greece and Southern Europe in general profoundly affect large numbers of people. The relative prosperity of Germany and Austria diverge vastly from that of Southern Europe, so much so that it calls into question the European Union viability.” Given that the European Union’s economy is the largest in the world (taken collectively), solving its problems (or not solving) definitely impacts global system – “therefore Europe’s failure to make meaningful progress in finding a definitive solution to a problem that began to emerge six years ago has overwhelming global significance.”

    • Andrew Allison

      Given the EU’s truly pathetic response to Russian adventurism in Ukraine and elsewhere, and utter lack of military preparedness, I question the “global significance” of Europe’s failure to make meaningful progress in finding a definitive solution to a problem that began to emerge six years ago. Just like France pretending to the great power it once as it sinks into irrelevancy, the EU’s glory days are behind it.

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