“Debt is the slavery of the free” Publilius Syrus
In Spain we have spent weeks hearing the supposed benefits of “relaxing deficit targets” and listening to many regional governments talk about “sharing the funds” as if debt was a donation and not a liability. Then, suddenly, the Troika arrived in Madrid and reminded us of what no one wanted to acknowledge. That debts have to be repaid and that there are no unconditional loans. Now, after a lost decade inflating the political spending burden, Spain faces more problems because the country has delayed for too long the inevitable reform of the Public Administration, and the bursting of the housing and civil work bubbles probably leads to a much more challenging solution. Continue reading Brussels and the Curse of Lender’s Generosity