The Eurozone’s Strategy of Pain
For the third year in a row, the eurozone is the weakest link in the world economy, with concerns mounting about its very viability. But the eurozone is doubling down on austerity, reasoning that no pain in Southern Europe would mean no gain in reform and adjustment.
https://prosyn.org/WJZ6OSv
BRUSSELS – For the third year in a row, the eurozone is the weakest link in the world economy. In 2010, attention was focused on responses to the crisis on the eurozone periphery – Greece, Portugal, and Ireland. In 2011, the crisis moved to the core, with Italy and Spain feeling the heat, and concerns mounting about the viability of the eurozone itself. The question for 2012 is whether those tensions will abate or reach a new climax.