Imports would also had to be cut, and the competitivness of export companies increased, as we have discussed in other places. A great idea is to avoid massive wage inflation that is completely disconnected to productivity increases... Furthermore, nothing requires that foreign balance deficits must be balanced through the issuance of debt, private or public. It can just as well be financed by foreign entities aquiring equity in domestic companies.

Speculative real estate bubbles can be reined in with regulation, if you lack the ability to raise rates (not that I'm going to focus much on this, as it wouldn't surprise me if we'll find that Sweden has failed at this very thing).

And yes, I place a very large part of the blame on "responible" German labour unions for accepting the wage suppression.

Peak oil is not an energy crisis. It is a liquid fuel crisis.