Sempre a perder

As Wolfgang Munchau wrote in the FT on Monday, the essential problem is that Spain and other Club Med states cannot both deflate to regain lost competitiveness within EMU and at the same grow fast enough to control debt dynamics. They can do one or the other, but not both at the same time.

Ambrose Evans-Pritchard, The dam breaks in Portugal, The Telegraph, Economics, January 11th, 2011