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Half the European countries had budget surpluses at the top of the boom, which is quite good.

Clearly not large enough surpluses to prevent them breaching the 3% deficit limit when the recession came, or the 60% debt-to-GDP limit.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 03:04:54 PM EST
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but still leaving them in a better situation today than in the alternative. Spain is seen as a potential target for the markets, but they are wary because its debt level is still quite low. So two years of massive recession and large public spending to limit the damage have been tolerated rather well so far.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Fri Feb 12th, 2010 at 03:12:30 PM EST
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If you think 1% budget surplus was enough in the bubble phase I have a bridge to sell you.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
by Migeru (migeru at eurotrib dot com) on Fri Feb 12th, 2010 at 03:14:13 PM EST
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