reforms to boost productivity growth to cut costs to manage their public

Reforms to boost productivity growth to cut costs to

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reforms to boost productivity growth, to cut costs, to manage their public sectors more efficiently," he said. But Tilford says surplus countries like Germany have to provide more demand for southern European products. Analysts fear Greece's economic crisis risks spilling over to other southern European countries with shaky economies. It has also raised questions on complex and questionable financial deals between Athens and financial companies like Goldman Sachs. But Tilford says these are symptoms and not the root causes of Greece's dilemma. Analysts like Tilford and Subacchi believe European governments will ultimately come to Athens's financial rescue - because a Greek crisis may soon become a European one. "I'm personally very convinced there eventually will be a solution to the Greek problem. Because we cannot think what a default of Greece will trigger. It's a risk nobody wants to take," said Subacchi. Greece's problems are also spilling beyond Europe's borders. The value of the euro currency has plunged for example, which makes American exports - key to the 24
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U.S. economic recovery - less competitive. Ultimately, Tilford says, the Greek problem reflects a world economic problem. "The eurozone is really just a microcosm of the global problems we see. So, unless we see the big countries in East Asia rebalancing away from exports and toward domestic demand, we are not going to generate a self-sustaining global economic recovery," he said. But Tilford does not believe Europe is ready, or willing, yet to undertake fundamental economic reforms he thinks are needed to right these imbalances. The region may rescue Greece, he says, but it will only be putting a bandage on a far bigger problem. References (n.d.). Retrieved from fas.org: (n.d.). Retrieved from : - %20Greece%20Debt%20Crisis.pdf (n.d.). Retrieved from : (n.d.). Retrieved from link.springer.com: - y greek-debt-crisis-affects-europe-world-economy . (n.d.). Retrieved from : - 85493662/113157.html 25
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