IMF: It's time to move the Shock Doctrine to Spain and Portugal

[marmar]

IMF Signals Spain, Portugal Must Step Up Budget Cuts (Update1)
By Susan Li and Sandrine Rastello


May 11 (Bloomberg) -- European countries saddled with debt should focus on cutting deficits in the wake of policy makers’ unprecedented efforts to contain the region’s sovereign-debt crisis, the International Monetary Fund’s No. 2 official indicated.

The rescue package “is an important step,” John Lipsky, the first deputy director at the fund, said in an interview with Bloomberg Television. “Now let’s see what happens in other countries that need to undertake adjustment programs.”

Lipsky spoke as the euro surrendered gains made after the European Union’s announcement of a rescue package of almost $1 trillion to the region’s most indebted nations. Investors are concerned the measures won’t be enough to prevent the crisis from spreading to countries including Spain and Portugal, which are also tackling growing deficits.

“The root of the problem is the fiscal situation” of Greece, Spain and Portugal, said Osamu Tanaka, a senior economist at Dai-Ichi Life Research Institute in Tokyo. “Plans probably won’t go as smoothly as planned, and the market will probably continue to go through bouts of uncertainty.”

Europe’s currency fell 0.5 percent to $1.2720 at 3:04 p.m. in Tokyo, from $1.2787 yesterday, when it soared as much as 2.7 percent. Against the yen, it slid 1.2 percent to 117.82. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=afBYbGuJd_WQ&pos=5

[AllentownJake]

1. This is going to get interesting

I hope they have hired plenty of Blackwater goons for their new operation, because the Greek, Spanish, and Portuguese population are not some South American country you can run roughshod over.

[laughingliberal]

2. K & R nt

[DCKit]

3. Geez, who could have seen that coming? Oh, that's right, many on DU did. n/t