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Spain’s Slump Means Europe Must Rethink Tough-Love Policy May 6, 2012

Posted by proeconomia in Fiscal policy, Main, Monetary policy, News on Greece, On the crisis, Opinion.
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Some “friendly advise” from this Bloomberg editorial on the case (and economic importance) of Spain, euro-bonds and Germany. Read the whole thing, and also the comments below it – it is important to see how people are re-acting. Here is the end of the article: “On this background, it’s absurd to assert — as Germany has — that Spain and other struggling economies can claw their way back to economic stability through fiscal austerity, despite slow or no growth. If Europe’s leaders are betting they’ll have time to act if the situation deteriorates, they’re wrong. The pressure on Spain is no longer productive. It’s undermining a government that is doing all it can. If the gamble fails, things will unravel quickly — too quickly, maybe, for Plan B to take effect.”

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