It is utterly ridiculous to think that the rich Europe could not master this debt crisis out of her own resources if only she got her act together! Start from the worst-case-scenario: add up the debts of the PIIGS-countries; scratch this amount from memory and start all over again, this time with better policies and structures. So a few GDPs go down the drain. So what? If there were a European-wide war, a lot more would go down the drain and life would go on afterwards all the same (except that there would be physical destruction).
Go ahead: waste a few years of living standard with a purpose in mind but don’t waste the living standard and perspectives of a whole generation without any purpose in mind!
The 1st Report of the EU Task Force for Greece, published today, outlines very well how Greece could become a “new and modern Greece” within less than a generation. It is clear that North/South production/consumption patterns require adjustments. If markets don’t accomplish that, then policies will have to. Don’t plan the economies and don’t let them hang loose; manage them in line with competitive advantages of each culture!