The New York Times Sees the Solution to Euro Zone Imbalances as a Problem

The countries of southern Europe (Spain, Italy, Portugal, and Greece) have enormous trade imbalances with the countries of northern Europe, most importantly Germany. This is the core problem facing the euro zone economies. In order to limit the size of these imbalances, the European Central Bank (ECB) and the European Commission (EC) are demanding that the southern countries sharply reduce their budget deficits. This has thrown these countries into severe recessions with double-digit unemploy...