tag:blogger.com,1999:blog-36227136.post2957215075965943565..comments2024-01-16T08:40:53.682+00:00Comments on <a href="http://www.openeurope.org.uk">Open Europe</a>: Spanish regional profligacy sits as a worrying lesson for the eurozoneOEhttp://www.blogger.com/profile/00556463374230498875noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-36227136.post-47526674930580337512012-05-31T07:07:28.871+01:002012-05-31T07:07:28.871+01:00It is a misplaced sense of solidarity that is kill...It is a misplaced sense of solidarity that is killing Europe.<br />The 'no one will be left behind' one, whatever they have done or will do.<br />This system is simply no longer working in Europe.<br /><br />All over the place it is the productive people/countries/entities are made to pay for the dysfunctional ones and iso these using it to become functional again it is seen as an alternative source of income to pay for a lifestyle that isnot affordable on their own income.<br />The nett payers group has simply become too small compared to the nett receivers group.<br /><br />In these kind of circumstances it only work when it is a hard (more US style) system. You have a limited time to solve things if you donot manage it within that timeframe you are on your own.<br /><br />Like we see here. Does anybody think that the regions would overspend like they did and do now, if it would have been fully clear that they would be hung out to dry if they did. <br />Most likely not, they just gamble on 'inter-region or government welfare' and probably think it is a good bet.<br />In other words they likely see overspending and running the chance that they end up with no money to pay for even the most basic things a smaller evil than cut say 5% of their spending (probably there in the form of fat anyway).<br /> <br />Looking it from that angle they likely see government, EU, etc assistance as a 90% certainty even though they are not officially/legally entitled to it.<br /> <br />You simply donot get things in grip if this is the system you have to do it with. Yopu have a built in incentive to underperform.<br />People/countries have to be held accountable for their own actions and not simply rely on welfare etc when they donot and what is worse see it as a normal behaviour (like they see in Greece now).Riknoreply@blogger.com