Europe is in the midst of a political and economic crisis that threatens to unravel decades of European integration and derail the world’s recovery from the great recession. To understand this crisis, let’s compare two countries.
Country A is a small nation with a long history of tax evasion, government debt defaults and a dysfunctional business and regulatory climate. It allows workers to retire in their 50s, and pays double pensions when they do. It lied about its budget to get into the eurozone.
Country B is a large, historically powerful nation with a record of low government debt. Country B even ran budget surpluses, including a 2% surplus just before the financial crisis hit in 2008.… Seguir leyendo »