Internal strife undermining economic hope

THE internal strife threatening the stability of the euro is starting to undermine the hope that the worst might indeed be over in terms of the global economic outlook.

As soon as the OECD published its modestly optimistic forecasts for next year, they were dismissed by Britain-based analysts, apparently smug in the belief that the euro project is turning out to be a basket case that will not last for much longer in its current form.

A huge fear exists that the slash and burn measures now being demanded of Greece and other weaker euro states including Ireland, will in fact worsen the crises because of the impact the corrective measures will have on economic demand and on tax revenues vital to stabilising the economies of Europe.