Europe: For the record. German Chancellor Merkel and the European Council have changed in the last 48 hours from emphasizing austerity and the importance of adhering to agreements and goals to focusing on growth.
The two economic ideas are not mutually exclusive. Nevertheless, the growth has not been discussed in connection with south European sovereign debt. The rise of the socialists in France and the rejectionists in Greece seems to jolted the European bankers to consider potentially more innovative ideas about continental economic health besides “pay what you owe” policies.
The window of innovation will not last long because the debt exceeds the capacity to pay it down. The demographics of up to 50% unemployment among the most able cohorts of the work forces in Mediterranean European states defeat growth without statism. This is the threat.