Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Why did Ireland bother? Don’t they have Trojan horses? › Re: Re: Why did Ireland bother? Don’t they have Trojan horses?
Most of the problems with the EZ have been identified here, but I think the solutions have been clouded by a pre-existing dislike of the euro experiment, in much the same manner as has AE-P. It is has become obvious that the EZ will have to change and change quite drastically but not necessarily destroy itself. Imbalances both internally and externally will have to be dealt with, and that is both a global and local problem needing global and local solutions.
Ditter, the solution has been identified. Mass austerity and internal devaluation, to the point where these economies become competitive again. The imbalance you refer to is obviously Germany’s surplus, but lets be sensible, do you think anyone would seriously suggest that Germany should run a deficit with the likes of Spain and Greece? How is that going to happen? “Dear vorkerz, from zees moment, vee must be less productive and buy more of zee olive oilz”
I think the fact the Europhiles are refusing to accept, is that these economies cannot be bound together with the levels of stability desired without total political and fiscal union. The possibility of that is now extremely remote.