Reporting from London — The latest plan to save Europe from its debt crisis was greeted with a burst of self-congratulation from the bleary-eyed leaders who negotiated it and a respite from the months of pounding by the continent's financial markets.More at that top link.
But the politicians who struck an early-morning deal in Brussels to avert financial collapse still face another ominous threat: a slide back into recession for their economies that could undermine the debt agreement as well as bring even greater social disorder to their streets.
The realization appears to be taking hold in some capitals that any "grand plan" to restore confidence in the Eurozone will fail without accompanying economic growth. Cuts in government spending that have been prescribed to get budget deficits under control also lead to job losses, along with the hardship and fear that foment social unrest.
Evidence is already coming in. From riots in Britain to peaceful protests by thousands of youths in Spain, from the angry unions marching through tear gas in Greece's streets to the far-right populist parties surging in popularity in the Netherlands and Scandinavia, the consequences of a hard economic squeeze are creating a backlash on the streets and making governments nervous.
Saturday, October 29, 2011
At Los Angeles Times, "Europe debt crisis plan hinges on economic growth":