With every passing day, the chances recede that Spain will escape the kind of meltdown that has afflicted Greece and Ireland. With every passing day, too, the chances of the eurozone surviving dwindle still further. A Greek exit would send shock-waves through the eurozone. Portugal and even Spain would probably come under fierce market pressure in their turn.
What’s more, there is no guarantee that France will escape the European contagion. For it is becoming increasingly and disturbingly clear that there are huge problems across France’s Pyrenean border.
Portugal is in a terrible mess. After a €78?billion bailout last year, Lisbon slashed welfare spending, cut public sector pay and put up taxes.
will know what happened the last time the world economy collapsed in ruins.
With capitalism and democracy in retreat, many European countries turned to military strongmen, extremist agitators and xenophobic demagogues. Barely eight years after the continent’s banks had collapsed, the world was at war.