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The best way to improve worker productivity in the deficit countries is to invest in productive capital. Hence the best way to resolve the Euro crisis and close the chronic imbalances is recycling of trade surpluses into EU structural funds geared towards productive investment.

As it is, EU industrial policy forces inefficient countries to shut down their physical plant, making them even less productive.

Economics is politics by other means

by Migeru (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 04:23:27 PM EST
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