Yeah, at the root level, she’s right. That’s why all those treaties and rules were put into place but were abandoned when the German economy underwent wrenching changes to the labor market in the early part of the last decade.
- Crisis solution needs many steps
- No one-shot solution
- Regaining market confidence in the euro is a long process
- Can’t spend more than we take in every year
- Markets speculating that euro area may break up (they were, liebchen, but there is less of that after a nine-cent rally).
- States must convince market that euro will not break up (or the ECB, either way…)
- Investors don’t understand our political will
- Need more normal spreads
- Euro bonds is not a solution
- Growth, austerity not in conflict
- We are returning to a period of weak growth
Bloomberg headlines.
