Quote:
Originally Posted by Bri
I'm not sure if it's a vicious cycle. Most EU governments have a fairly decent grip on their budget deficits and interest payments on debt are far from overwhelming annual budgets.
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That was the case with Ireland, Portugal, Greece, and Cyprus before the accepted more debt from IMF and ECB.
Quote:
Originally Posted by Bri
Monetary expansion without structural reforms only brings relief in the short term. Unfortunately the spending cuts in combination with a recession are very painful, and people are getting hurt on the individual level.
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But I agree in general principle, since they decided to deal with their problems in this way (accumulating more debt, and being bound by euros current macro-economic targets) at the worst possible time (global recession), it is bound to be destructive for the people.