German Economist Believes That Italy and Spain Could Look Like Greece Unless Policy Changes

Peter Bofinger is a member of the German Council Of Economic Experts and he is not pleased with what he sees in the eurozone.  Fiscal consolidation is making things worse for Italy and Spain and it is spilling over to France and Germany.  Unemployment in France is over 10% and Germany, which exports 60% of its products and services to eurozone members,  is headed for negative growth.  The banking system has been weakened, and the recession threatens to make them even weaker as more loans become impaired.  He argues that fiscal consolidation should be stopped until the troubled economies get on a growth path.