Friday 24 September 2010

The view from Frankfurt

"A shrinking economy prompts renewed misgivings". That's the headline over an article in the conservative Frankfurter Allgemeine Zeitung, which goes on to note that:

"In financial terms, Ireland has its back to the wall. Not only is it attempting to cope with the massive structural deficits caused by an unchecked property crisis. Like Greece, Ireland is having trouble dealing with the mountains of debt amassed by major banks [...]. Drastic spending cuts are throttling the domestic economy and, in the worst-case scenario, may result in a deflationary spiral". For German speakers, the full article is available here.

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