This is an excellent MUST READ article published in the Wall Street Journal.
For me, it confirms that the troika of the IMF, ECB, and EC have been myopic in dealing with the financial crisis in Southern Europe. Let’s recap on the context. Austerity is reducing demand and putting more people out of work, driving record numbers to suicide. Meanwhile, the banks in Southern Europe don’t or can’t lend to small businesses, the backbone of the economy. Clearly, massive investment is required into top-quality, properly costed and risk-assessed infrastructure projects to kick-start growth based on Keynesian principles. These national infrastructure projects will need to be financed by a new initiative, similar to the Marshall Plan that kick-started Germany’s growth after WWII.