The EU has attempted to fix this with bailout loans. It has also imposed austerity and structural adjustment leading to wage reductions and the crushing of unit labour costs in the periphery. The shift has been violent, particularly in Greece, and the attendant social costs have been enormous. But the policy is hopeless since German costs have remained flat: peripheral countries would have to decrease wages without limit to claw back competitiveness and begin to catch up with Germany. The most likely outcome would be social explosion and the collapse of the eurozone.
Casa Robino
Shared Hospitality Excavations
