May 17, 2010

AL QAEDA'S ONLY VICTORY...:

Europe must reset the clock on stability and growth (José María Aznar, May 16 2010, Financial Times)

A return to the original stability and growth pact, which included stricter sustainability requirements for public accounts, would send a positive signal to the markets and bolster the euro. Moreover, the EU should encourage national stability pacts for all member states.

The Union also needs to revitalise growth and job creation, which is only possible with a new Lisbon agenda of structural economic reforms. To be successful, this must be comprehensive and require strict compliance.

To strengthen the euro, the message must also go out that the financial aid package for Greece is not a “bail-out”, which goes against the idea and spirit of the European economic and monetary union, but is instead a repayable loan. Otherwise, moral hazard will undermine the euro’s credibility and reduce the incentive for governments to keep their fiscal houses in order.

Greece must implement profound structural reforms to shore up its public finances, meet its financial commitments and return the borrowed money to its European partners under the terms of last week’s rescue plan, agreed between EU finance ministers, central bankers and the International Monetary Fund. But similar austerity is needed from all countries in the eurozone, especially those receiving the most scrutiny from international investors.

Spain is one of those countries.


...was driving him from office.

Posted by Orrin Judd at May 17, 2010 5:32 AM
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