http://globaleconomicanalysis.blogspot.com/2011/07/no-austerity-for-france-just-piigs.html
Austerity or not, it is precisely this deficit reduction play that has Krugman screaming "It's 1937". Please see Greece Defaults; Krugman Screams It's 1937; Maastricht Treaty Needs Revisions; "European Monetary Fund" Created; German Taxpayers on the Hook for a recap.
I find it unlikely that France will meet those targets. Moreover, and although Ireland, Greece, Portugal, and Spain are exempt from that 3% by 2013 ruling, it is 100% certain Greece and Ireland will need another bailout by then.
Expect to see this deal run into enormous difficulty by the end of the year, if not the end of next month.
Austerity or not, it is precisely this deficit reduction play that has Krugman screaming "It's 1937". Please see Greece Defaults; Krugman Screams It's 1937; Maastricht Treaty Needs Revisions; "European Monetary Fund" Created; German Taxpayers on the Hook for a recap.
I find it unlikely that France will meet those targets. Moreover, and although Ireland, Greece, Portugal, and Spain are exempt from that 3% by 2013 ruling, it is 100% certain Greece and Ireland will need another bailout by then.
Expect to see this deal run into enormous difficulty by the end of the year, if not the end of next month.
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