Will why fail bailout plan in Europe after the initial euphoria of the day Monday by the announcement over the weekend of the bailout for Greece and plan the rest of the PIIGS, markets returned to reality and can not twist bearing that mark slates. Why is has he spent so much euphoria to the sensation of a temporary lull? Beyond the doubts about the way in which will implement the rescue plan, there are other issues which remain very worried investors who are convinced that the context of uncertainty and volatility will extend throughout 2010 and possibly until 2011. The reality is that firstly, the bailout plan does not end by solve the basic problems that have these economies although Yes it gives them a little oxygen as to think about measures that tend to solve them. The solution of the problems involves a heavy backpack to the euro, whose only way out is the adoption of drastic measures such as the exit of Greece from the eurozone. The tax issue is the center of the debate. The past Wednesday, the Government of Rodriguez Zapatero presented an adjustment plan which included low wage in the public sector and cuts in key areas, which has generated a real uproar and has put the President on the verge of an internal crisis with Spanish unions.

And just as it has happened in Greece, now it’s Spain that threatens with a great social upheaval in response to adjustment measures. The reality is that despite the need to recompose the fiscal situation have the PIIGS, not seems to be the right time for its implementation, in a recessive context and high unemployment. The IMF he seems to not care this issue and continuing to apply pressure to the setting. But does has not thought the IMF that as happened in argentina’s experience, a fiscal adjustment can lead to a vicious circle that deepens the crisis and not solve the deficit problem? It seems that it is not a possible outcome within the analysis of this international organism so questioned.

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