Joseph Stiglitz on fiscal reform as solidarity

In a comment republished by the daily Der Standard the US economist Joseph E. Stiglitz rejects two theoretically conceivable solutions to the EU's current economic and financial crisis - a uniform decrease in wages and the division of the Eurozone into sub-regions - in favour of "a third solution, which Europe may come to realise is the most promising for all: implement the institutional reforms, including the necessary fiscal framework, that should have been made when the euro was launched. It is not too late for Europe to implement these reforms and thus live up to the ideals, based on solidarity, that underlay the euro's creation. But if Europe cannot do so, then perhaps it is better to admit failure and move on than to extract a high price in unemployment and human suffering in the name of a flawed economic model."

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