This editorial praises the step forward taken by European leaders on the debt crisis but it argues that much is left to be done. In particular, it argues for the European Central Bank to operate like central banks in sovereign states. It should become the lender of last resort. The leaders of ECB have shied away from that responsibility and it is not politically popular in the nation states that have to put up the money.
The article supports many of the structural changes that are being imposed on states that require financial support, but it makes that case that fiscal austerity has made it impossible for Greece and other troubled states to grow their economies in order to produce the needed tax revenue for deficit reduction.
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