The EU’s Penchant for Punishment Could Cause Good Eggs to Go Bad
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  • Andrew Allison

    I think that the problem may be that there’s a misapprehension that austerity can somehow be avoided. One way to look at the situation is that markets are increasingly unwilling to toss money into economic black holes: if a country can’t afford its current debt, lending it more is folly.

  • Jim.

    @1: Agreed.

    The erosion (and now collapse) of these countries’ finances is the direct result of the erosion (to the point of collapse) of Europe’s share of global trade.

    Europeans have to get used to the fact that they no longer have the sort of dominant economy that can support a vigorous Blue social model.

    Printing or borrowing magic money won’t help. They have to rebuild their economic base. That won’t be fast, and things will get worse before they get better.

    The fact that Blue politicians boost the expectations of their populations instead of telling them the hard facts (or trying to change the subject away from economics, which is inevitably going to be bad news) is going to make the readjustment of expectations all that much harder.

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