Bailouts Won’t Save Europe, Only Reform Will

from Politics et al by Mike Roark



Bailouts Won’t Save Europe, Only Reform Will:

As European leaders panic over bailouts for Southern Europe, they miss an important reality. Comprehensive structural reform is the only long-term solution for recovery. Perversely, bailouts disincentivize governments from undertaking painful but necessary reforms and thereby support fundamental problems—such as overtaxation, overregulation, and broken public sectors—that precipitated the current financial mess in the Eurozone periphery.