This is an interesting story, reported in the Telegraph, that the President of the EU has needed to publicly defended Angela Merkel and Germany‘s financial policy. Check it out!
Jose Manuel Barroso says Angela Merkel not to blame for harsh austerity policies – Telegraph.
The article highlights deep divisions in Europe between North and South over austerity.
In my view, Barroso is wrong to argue that this is simply a question of prudent financial management in Southern Europe. Because of the Euro, Southern Europe cannot devalue to increase competitiveness. Southern Europe wants Germany to reflate which will give their economies a greater chance of recovery.
Do you think that the views of Northern Europe and Southern Europe are reconcilable?
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