Making Fiscal Consolidation Work In Greece, Portugal, and Spain: Some Lessons from Argentina

The Greek crisis has created fears of contagion in other countries of Europe, notably in Portugal and Spain. Unless it is resolved quickly and effectively, the spread will be more severe for it could affect other countries inside and outside of Europe. A growing consensus among international observers is that, despite a massive (€110bn) bailout package from the EU and the IMF in exchange for fiscal austerity measures, public debt restructuring in Greece will not be avoided.