The Californian solution for the Club Med

FT
The Californian solution for the Club Med
(By Charles Goodhart and Dimitrios Tsomocos)
"Greece and Portugal have two severe economic problems. These are, first, a fiscal position, deficit and debt ratio verging on the unsustainable, and, second, a serious lack of competitiveness (a real exchange rate which is much too high). Italy and Spain may also soon face a similar precarious situation. These countries’ membership of the eurozone constrains the solution to this joint problem."