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Despite harsh austerity measures, the debt loads of Greece and other periphery eurozone countries are unsustainable. Their economies cannot even generate the revenues necessary to meet their current bail-out debt service obligations or the high cost of private financing. Greece and other eurozone debtors are likely to default without feasible job and economic growth strategies.
Furthermore, the electorates of Germany, France, Finland and other eurozone countries will probably rebel against the continued support by their governments of Greece and other EU bail-outs because of a sense they are being unfairly penalised for their productivity, cultural values, discipline and work ethic and the fiscal errors, economic policy failures and/or regulatory omissions of other eurozone governments.
One possible solution to this dilemma could be confining any required outsourcing of EU production of goods and services to countries with depressed economies within the Union (together with relevant skill training and productivity standards) rather than “offshoring” them outside the EU in order to create the jobs and revenues necessary to balance, maintain and benefit the fiscal and social stability of all eurozone countries.
The US should also adopt a domestic outsourcing programme for the same reasons.
Source:http://www.ft.com/cms/s/0/743a9386-84cb-11e0-afcb-00144feabdc0.html#axzz1NAx22VM7
