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While the mishandling of Ireland may have been acknowledged, the general mishandling continues. Right now the commission, backed by Eurogroup and ECB, is strangling Finland's economy by the debt rules.

After cutting across the board last year, this year the Finnish education system is going through the shredder. Yes, they are sacrificing their world famous competitive edge to meet arbitrary targets. And the Commission lectures them for not meeting the targets fast enough.

And Ireland's experience might in general be good, if one ignores the horrible advice and threats of closed ATM's, but if one looks at GDP, the eurozone is growing slower than the non-eurozone EU. And while GDP is a bad measure, it is a bad measure with legal weight in the eurozone.

I think a bad divorce is the most likely scenario, right now probably starting with Italy. M5* is ahead in the polls, a financial crisis is looming, the referendum might get a no, etc. So new elections might be called, M5* might win and take Italy out of the eurozone.

I just hope they have the sense to hire some consultants from Greece.

by fjallstrom on Sun Aug 28th, 2016 at 09:10:10 AM EST
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If Germany doesn't develop some political economic literacy soon, that might well be an outcome, although I still think the other members ganging up on Germany and demanding change would be a less painful option. Germany leaving the Euro would be the ultimate best solution if that doesn't work. The disruption caused to a smaller member state of leaving the EU/Eurozone would make Brexit look easy by comparison.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Aug 28th, 2016 at 11:46:50 AM EST
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The MV5* is unequivocally Keynesian in its approach to economics - with a dash of Veblen in its full-throated support of artisanry and small family businesses with regional focus on quality to solve unemployment, through eco-tourism, better museum and UNESCO site management and bailing from the Euro.
Contrary to one up thread comment, Italy is not swinging right. Salvini (Italian Trump/LePen/Farage type) is not that popular, notwithstanding being the only viable candidate emerged from the unholy mess Berlu's clinging to a phantom throne has caused in the right ranks. Salvinitial at 15% is significant but thanks to the MV5* still a sideshow. No-one else has emerged from the right, and probably won't even though plenty would still vote right if they had a less boorish leader than Salvini.
Italy is trending right mostly because Renzi is a Blairite to the bone, talking left and walking centre-right. Lots of bailouts and ins for bankster-buds, dirty industries, ritual kowtowing to Merkel, 3-card Monte fiscal legerdemain, new F-35s, poodle proxy warring by letting raids on Libya fly from bases here, sanctions on Russia, continued presence in Afghanistan and Iraq costing a million Euros a day, need I go on?
Booed wherever he goes by the public, he serves his lobby masters enthusiastically, spinning so many PowerPoint lies, his nick is Pinocchio.
The right is stymied, the so-called left heading that way as they have no plan B. Post-Renzi, the deluge...
The banks are teetering.
Good news: MV5* has governed Roma and Torino now for a while and improvements are happening.
A non-trivial accomplishment.
Beppe Grillo has dialed back the foam factor and become a wiser, though still eloquent sideline supporter.
Things are shaping up for a lively autumn as his constitutional reform is not polling well in spite of the blatantly biased reporting on state TV.
The MV5* are waxing, dynamic and offeringredients such an intelligent blend of policies that many Italians are waking up to their appeal.
It is a pleasure to see their continued ascent to power. They remain firm under constant attack, and are upping their game.
Whether their little sling can unseat Goliath is another story, though there are some very promising signs.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Tue Aug 30th, 2016 at 12:12:45 AM EST
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