UNISONActive is an unofficial blog produced by UNISON activists for UNISON activists. Bringing news, briefings and events from a progressive left perspective.

Sunday, 24 April 2011

Eurozone austerity strategy in disarray

Reuters reports that rising public anger in northern Europe at a series of taxpayer funded bailouts is sending tremors through the political landscape, boosting anti-euro parties such as the True Finns in Finland and sparking open policy rows in Germany. http://www.reuters.com/article/2011/04/21/businesspro-us-eurozone-strategy-idUSTRE73K5IK20110421

The report claims that there is an "emerging consensus" that private-sector creditors will have to accept a write-down of their loans, starting with Greece: "The biggest conundrum is Greece, a country whose sovereign debt levels are forecast to rise to 160 percent of annual output over the coming years, on a par with Zimbabwe. Private economists have been saying for months that this debt mountain is unsustainable, but some policymakers in Europe appear only now to be waking up to that fact."