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It would make much more sense to Premium Safety First Drink With CNA St Patricks Day Shirt take steps now rather than having to take more painful steps later. The election result suggests that there is little stomach for reform in Greece. But Greece has no choice but to reform. Delay will only make the eventual medicine more bitter. There are problems with both these arguments. First, it is hard to ascertain a correlation between the kinds of structural reforms the Commission is demanding of the South (principally labour market deregulation) and economic growth. Some of the best performing European economies over the last 20 years – notably Sweden and Austria – have relatively highly regulated labour markets.

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Germany – the benchmark for much of the Premium Safety First Drink With CNA St Patricks Day Shirts Commission’s thinking – also has a tightly regulated labour market (notwithstanding 2004’s Hartz IV reforms), at least in regards to permanent workers (see chart 2). There is certainly a case for labour market reforms to address insider/outsider problems and to help young people and those with poor skills into work. But it is important not to exaggerate the economic effects of such reforms. Nor can differences in product market regulation explain the lack of convergence in living standards within the eurozone.

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