There can be no eurozone stability without economic growth

Everyone stands to lose if current economic trends persist in the eurozone, starting with Germany. If the countries with large external surpluses will not or cannot rebalance their economies, the struggling southern member-states will find it impossible to extract themselves from the mire, irrespective of what they do: their fiscal positions, for example, will not improve if their economies contract faster than they can cut public spending.

The result would be ongoing slump and fiscal crisis in the south, perhaps even spreading to France. This would severely depress Germany’s highly export-dependent economy, making it all but impossible to prevent a steep rise in the country’s public debt.

• Primary Source

ESO: Background information: Why a fearful Germany is refusing to rush to the rescue http://www.europeansources.info/record/why-a-fearful-germany-is-refusing-to-rush-to-the-rescue/

ESO: Background information: The message from Berlin that Europe failed to grasp http://www.europeansources.info/record/the-message-from-berlin-that-europe-failed-to-grasp/

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