Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In the case of Spain, the government kept to the 3% deficit limit "impeccably, impeccably". Too bad that this implied the country's trade deficit had to be financed by private debt. The EU's asymmetric concept of debt (public debt: toxic; private debt: okay) coupled with the refusal to acknowledge you cannot have a surplus without someone else having a deficit, caused the current crisis. And, by the looks of the policy response, will cause the next crisis, too.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Tue Feb 14th, 2012 at 06:43:04 PM EST
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