Slovenia Shows Why the EU Shouldn’t Discard Austerity – Bloomberg 06-03-13

Salient to Investors:

Megan Greene at Maverick Intelligence writes:

  • Austerity has become a bad word in the euro area and blamed for an ever-worsening recession.
  • Germany’s tough-love approach to repairing the euro area’s finances has fallen out of favor but has merit in the case of Slovenia, which has been masterful at delaying difficult reform, particularly in the banking sector. Absent no real pressure to finally clean up the banking sector and sell state assets, the flow dynamics may keep worsening public debt, government deficits and bad bank loans.

Read the full article at http://www.bloomberg.com/news/2013-06-03/slovenia-shows-why-the-eu-shouldn-t-discard-austerity.html

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Rich-poor divide accelerating, says OECD – BBC News 05-15-13

Salient to Investors:

The OECD said:
  • The gap between rich and poor widened more in the 3 years to 2010 than in the previous 12 years. The richest 10% of society in the 33 OECD countries received 9.5 times that of the poorest in terms of income, versus 9 times in 2007.
  • Countries with the biggest gaps included the US, Turkey, Mexico and Chile. Countries with the least gaps were mainly in north Europe, Iceland, Norway, Denmark and Slovenia.
  • If governments do not stop cutting back on welfare support the gap will widen.

Read the full article at http://www.bbc.co.uk/news/business-22545210

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