Krugman does not mince words in this article. Greece is a disaster, and Spain and Italy need help. The economic medicine that has been prescribed is making things worse, but the only solution to the problem would be for Germany to do what it does not want to do. It is against its economic religion, and it may not be politically doable.
If the common market fails, the worse fallout will be political. The noble idea of an integrated Europe will have failed and the established political parties will suffer a loss of confidence. It will be an invitation for the more extremist parties to move into power.
I hope that Krugman is wrong, but the austerity disease has been resistant to most of the antibiotics that have been injected from the outside to the carriers of the disease.
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