Spain Calls. Will Merkel Answer?
The Economist | November 25, 2011
Newly elected Spanish PM Mariano Rajoy has the country’s biggest mandate in 30 years, but he will still need plenty of outside support to tackle Spain’s imposing economic issues. ++ He is hoping that Germany and the ECB will publically support his proposed reforms, but Angela Merkel has said she wants to see real action first. ++ Because the situation is so tenuous and Rajoy will not take power until mid-December, Merkel must take the leap and show real support now before skittish market forces do further damage.
Tue, Dec 13th 2011, 02:54
marcel kin cheuk, nil, (8)
unfortunatly the tighter fiscal integration , while may help boost chance of solving fiscal problem with similar context in the future, political problems like large unemployment resulted from a economic shocks may knock some less fiscally robost states into fiscaland political chaos. We should not be easily forgetfull as big states like germany had once fall into fiscal problem and large unemployment during its unification.
Euro planners should desgin contingence plan and even promises to help solve this kind of problem as this may make some members states prolitical unstable and lead to chronic economic and social problems over the euro states.