There should be a simple solution to the problems of Europe. Greece can first stop paying interest on bonds (or ask for a moratorium for 1-2 years), restructure the economy (that is the difficult part, more on it follows), get back in business. Banks which get hit due to restructuring will get support/bail out from their own governments. This way nobody pays for others' sins.
In India we had massive cleaning up of the banking system in the 90s. Restructuring of bank loans happens regularly. So this solution is implementable.
The difficult part is to restructure the economy. That means creating jobs which will pay well and therefore govt support reduces. Europe including Greece are losing competitiveness in mfg. Efforts of the developed world to globalise so that access to markets in developing economy is available seem to have backfired on them as with globalisation, mfg shifted and technology transfer became easy. This problem gets exaceberated by the lifestyle enjoyed by Europeans. I have come across several comments branding Europeans as "Lazy" and "not willing to work". These are comments from Indian companies who acquired businesses in Europe and had tough time getting people to work (meaning work longer hours beyond the official working hours). Greece reportedly has severest problem here with people retiring in 40s and most people working in govt.
Maybe one solution is to export people to where there are jobs and these expats support the local economy (like the gulf employees support Kerala's economy). Given the smallness of population of Europe, the world will have enough jobs for people willing to work. China, India, Canada, Australia, Germany, France, UK, US should allow migration from the affected countries. They can have minimum visa quota.
An unusual solution but one which will work.
And then we are back in business.
In India we had massive cleaning up of the banking system in the 90s. Restructuring of bank loans happens regularly. So this solution is implementable.
The difficult part is to restructure the economy. That means creating jobs which will pay well and therefore govt support reduces. Europe including Greece are losing competitiveness in mfg. Efforts of the developed world to globalise so that access to markets in developing economy is available seem to have backfired on them as with globalisation, mfg shifted and technology transfer became easy. This problem gets exaceberated by the lifestyle enjoyed by Europeans. I have come across several comments branding Europeans as "Lazy" and "not willing to work". These are comments from Indian companies who acquired businesses in Europe and had tough time getting people to work (meaning work longer hours beyond the official working hours). Greece reportedly has severest problem here with people retiring in 40s and most people working in govt.
Maybe one solution is to export people to where there are jobs and these expats support the local economy (like the gulf employees support Kerala's economy). Given the smallness of population of Europe, the world will have enough jobs for people willing to work. China, India, Canada, Australia, Germany, France, UK, US should allow migration from the affected countries. They can have minimum visa quota.
An unusual solution but one which will work.
And then we are back in business.
