Euro crisis flares again, with a vengeance

http://www.theglobeandmail.com/report-on-business/top-business-stories/euro-crisis-flares-again-with-a-vengeance/article4570083/?cmpid=rss1

In the worst financial crisis humanity has ever faced since the Great Depression, it is evident now that 4 years is not enough time for European leaders to agree on a clear path to recovery, let alone recover its economy.

The article discusses how European countries such as Greece and Spain are facing extremely high unemployment rates (25% for Spain) and at the same time facing the brunt of government austerity measures, which aims to reduce the governments’ ballooning debt problem.

However, the problem lies in the very fundamental economics itself.

The reason why these countries are facing such high unemployment cannot be blamed solely on austerity because the public sector counts for a small portion of what the proivate sector employs. The reason why unemployment is so high is because of the lost of competitiveness of the European workforce.

By regaining competitiveness, countries can reduce unemployment, increase tax revenue and then tame the debt, reduce austerity which can be used for future oriented programs such as education to increase future competitiveness.

Governments must realize this fundamental error and work to remodel the economy in a way which emphasizes its strengths and reduce foreign dependencies.

Any specific plans to share about how this could be done?