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By Prof. Dr. Bruno Colmant, Professor at the Luxembourg School of Finance
As the crisis is gradually becoming more diffused, the balance in the budget issue takes a worrying turn. During the first months of the seism, the budget deficit seemed only to be temporary. However, today we know that things are much worse. Clearly much worse for the deficit is structural. The crisis has only served to reveal the immense public debts inherited from the seventies, increased with the explosion of health and pension expenses. For decades, the country has been buying itself years of immobilism, requiring credit from the next generations. The public debt of former decades has never been reimbursed. It has been alleviated by an exchange rate decrease and an artificial...
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