European Debt Crisis: Euro Deal

There is a French sign at all railway stations: Caution—one train hides another. The problem for the Eurozone is that even if the action this Wednesday resolves the sovereign debt crisis, there will still be the competitiveness crisis. The austerity measures taken across Europe are for the moment at least largely anti-growth. Unless the EU, and in particular the eurozone countries, find ways to promote growth as they pay down debts and reduce deficits, this second hidden crisis will loom even larger than the first.

Link: Euro deal leaves much to do on rescue fund, Greek debt (Wall Street Journal 10/27/11)