All roads lead to Spanish pain

Spain cannot readjust on its own within the eurozone, and it's unlikely to be saved by a German decision to start running up deficits. So what will it do?

For several years I have been saying that Spain would leave the euro and restructure its external debt. I should say that I specify Spain because it is the country in which I was born and grew up, and so it is also the country I know best. When I say Spain, however, I really mean all the peripheral European countries that, like Spain, are uncompetitive, have high debt levels, and suffer from low savings rates that had been forced down in the past decade to dangerous levels.


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