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Euro

Countries in the periphery of the Eurozone face one of the toughest dilemmas in recent history. Each of them with their particularities, Greece, Portugal, Italy and Spain all share the challenge of dealing with the consequences of sustained large current account deficits, the accumulation of public and private debt and a protracted banking crisis. On top of these troubles, they lack an independent monetary policy, possess minimal fiscal maneuverability due to already unsustainable levels of public debt, and have to work under a marked sense of urgency due to painful and untenable unemployment rates. Their dilemma is over whether to implement further structural reform in the frame of the Eurozone, knowing that these measures could take longer to take effect …