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Why the EU will not Survive

The problem, I think, is much more serious than Rajoy’s flunking hard choices, and I don’t think there was anything he could do to increase the country’s credibility in a significant way. We have long passed that stage.?

Why? Because, as I have been suggesting for the last six to twelve months, Spain has already started on its downward spiral and there is almost nothing Rajoy or anyone else can do to prevent all parts of the economy – workers, small businesses, large businesses, creditors, depositors, and yes, policymakers – from acting each in their own way to increase the debt burden, increase economic uncertainty, make the balance sheet more fragile, and reduce growth.

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