The Labour party and the Greens might like to think that Europe isn’t in crisis and Greece isn’t an issue. They are simply in denial and the problem with denial is that it eventually catches up with you. The world economy simply patched over serious issues in 2008. The festering sores under those band aids are starting to stink.
The World economic situation isn’t getting better anytime soon and to pretend otherwise is simply denial:
The fact is that technocrats at the IMF and elsewhere made it easier for politicians to delay the reckoning by putting together economic programs that didn’t hang together from day one. With optimistic growth projections, debt dynamics looked a lot better, which in turn made it look like sustainability was around the corner. There is an important lesson here for the next round in Spain. Economists have to do a better and more honest job. When programs don’t add up, they have to say it loud and clear.