The EU Commission has published its quarterly report on the Euro area economic performance. There is really very little new in the report relative to Q1 report, but some things worth highlighting (available here).
The Commission report providers two tables worth considering in more details. Table 3 below is not new - it has featured in January report by the IMF and then subsequently in other IMF/OECD/EU commission reports since.
But Table 4 is now published alongside Table 3 (if only a handful pages below), which provides for an interesting comparison. Suppose we take as a measure of affordability of banking measures, the projected overall health of the real economy, as reflected in the expected growth rate in real GDP. We compare this against the total level of liabilities assumed by the states in respect to the banking crisis... we plot the two things:
Oh yes, you've got it right - the country that is least able to pick up the tab takes upon itself the greatest level of liabilities... And, in case you wonder who is that lingering in the +/+ quadrant (combining economic growth and no bailouts):Yeps, that low tax export-oriented economy, called Slovakia and Financial Services exporting powerhouse of Luxembourg. Ever wondered if there is any proof that, contrary to Messrs Cowen, Lenihan and Mrs Coughlan's assertions, our failure is neither in our exposure to Global Finance, nor to Low Tax. Our failure is in our policies exposure to the likes of Messrs Cowen, Lenihan and Mrs Coughlan...