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Thursday, November 17, 2011

Will we see "doomsday"?

It is utterly ridiculous to think that the rich Europe could not master this debt crisis out of her own resources if only she got her act together! Start from the worst-case-scenario: add up the debts of the PIIGS-countries; scratch this amount from memory and start all over again, this time with better policies and structures. So a few GDPs go down the drain. So what? If there were a European-wide war, a lot more would go down the drain and life would go on afterwards all the same (except that there would be physical destruction).

Go ahead: waste a few years of living standard with a purpose in mind but don’t waste the living standard and perspectives of a whole generation without any purpose in mind!

The 1st Report of the EU Task Force for Greece, published today, outlines very well how Greece could become a “new and modern Greece” within less than a generation. It is clear that North/South production/consumption patterns require adjustments. If markets don’t accomplish that, then policies will have to. Don’t plan the economies and don’t let them hang loose; manage them in line with competitive advantages of each culture!

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