http://www.nytimes.com/2011/04/09/world/europe/09portugal.html?src=me
The problems of the weaker countries are not just sovereign debt, but also lack of competitiveness, both in Europe and the larger world. Without the nations’ restoring competitiveness and selling more goods abroad, which can come only through a longer-term process of reducing wages and taxes to spur private sector investment, economists are not optimistic about prospects for new growth soon.
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SS says
0% or negative GDP growth , high interest burden to service, higher taxes, higher unemployment - I wonder how they can escape this debt trap.
Deflation is guaranteed in these countries - This is no way out.
The problems of the weaker countries are not just sovereign debt, but also lack of competitiveness, both in Europe and the larger world. Without the nations’ restoring competitiveness and selling more goods abroad, which can come only through a longer-term process of reducing wages and taxes to spur private sector investment, economists are not optimistic about prospects for new growth soon.
------------
SS says
0% or negative GDP growth , high interest burden to service, higher taxes, higher unemployment - I wonder how they can escape this debt trap.
Deflation is guaranteed in these countries - This is no way out.
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