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Euro crisis imbalances
Strašek, Sebastjan
Economic imbalances in euro area are cause for serious concern. The key question is how the periphery countries will adjust. We advance some important issues facing Europe in 2015. Todayʹs debt ...crisis in the PIIGS is competitiveness and growth crisis and not merely a debt crisis. A great proportion of the imbalances are due to structural lack of competitiveness, not price competitiveness. Unless there is a change in industrial policies of periphery countries, which will require a change in the macroeconomic policies the underlying situation will not change.
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