The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
You can find the same when you look at the Latin American debt crisis in the 80s and early 90s. Brazil looked hopeless at that time. But for the last 10 years, it has been another star performer in the world economy.
Wow -and no mention of the fact that Latin America recovered by throwing to the dustbin the very policies that this guy is telling us must be applied come what may ("we did not agree with IMF and anyway what difference would it make?"). Well, there might be some logic to it: if you do it long enough, the population will be so fed up that it will go full Venezuelan, with added beheading of the banksters. Therefore bringing a nice period of growth. QED. Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
Indeed, they might be following different policies, but first they had to get the creditors boot out of their neck. And they decided to do it the "creditor-friendly" way.
In any case, in Southern Europe, I think both avenues are closed: "creditor-friendly" = mathematically impossible. "creditor-unfriendly" = disaster consequences (as I bet there will be political will to make any country that follows that path an "example").
Also, while they did have to get the creditors off their necks, the whole of the last 10 years (and a bit) have been spent under a Lula presidency or that of her formet chief of cabinet. Whose inclinations are totally at odds with the EU elites.
So, it feels a bit rich to give the fiscal consolidation in the first year of his presidency credit for the entirety of the performance, and none to a move towards more left-wing policies and lower inequalities (not saying that there are no other factors). Especially since Argentina and Venezuela did quite decently over the period as well. Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi
Lula... urged Portuguese policymakers to reject any austerity measures. "The IMF won't resolve Portugal's problems, like it didn't solve Brazil's" he told Portuguese reporters on Monday, making the point that accepting an EU-IMF bailout would results in stricter austerity measures which would hamper growth, according to The Washington Post.
But that is not the issue. The issue is how did they get rid of it? They opted for paying. Super-avits of 4.5% year over year.
Brazil's model is not one of "sticking the finger to creditors", au contraire.
I am not saying that it is a good model to follow (I actually think it is an IMPOSSIBLE model to follow).
But in name of getting the history correct (my only point here, nothing more), the Brazilian case is not one of defaulting or anything like that.
by Frank Schnittger - Sep 24 2 comments
by Oui - Sep 19 19 comments
by Oui - Sep 13 35 comments
by Frank Schnittger - Sep 11 5 comments
by Cat - Sep 13 9 comments
by Frank Schnittger - Sep 2 2 comments
by Oui - Sep 301 comment
by Oui - Sep 29
by Oui - Sep 28
by Oui - Sep 275 comments
by Oui - Sep 2618 comments
by Frank Schnittger - Sep 242 comments
by Oui - Sep 1919 comments
by gmoke - Sep 173 comments
by Oui - Sep 153 comments
by Oui - Sep 15
by Oui - Sep 1411 comments
by Oui - Sep 1335 comments
by Cat - Sep 139 comments
by Oui - Sep 127 comments
by Frank Schnittger - Sep 115 comments
by Oui - Sep 929 comments
by Oui - Sep 713 comments
by Oui - Sep 61 comment
by Frank Schnittger - Sep 22 comments
by gmoke - Sep 2