Finding national solutions to long-term economic challenges may drive the region apart

Jaime Caruana (Internet photo)

Across Europe, many governments are in financial difficulty. From Greece to Ireland, Portugal and Spain, public expenditure cuts, austerity and retrenchment coupled with low levels of growth and rising inflation are creating significant political problems. In response, governments are increasing taxes, cutting public expenditure, keeping interest rates low, and divesting themselves of an ever wider range of state controlled ventures.

The consequence is that protest both public and private is growing from a wide range of citizens. These include those most affected in the public sector, students in higher education who are having to pay increased fees