SAVE SOUTHERN EUROPE !

Southern Europe's moribund growth is rooted in the long term decline of competitiveness in countries like Italy, Spain and Portugal. Reforms to free up labour markets, cut business costs and slash red tape could pay off in the long term. But right now, austerity measures to bring budgets down are compunding the no-growth problem.

Greece's economy is set to contract for the fifth successive year with a 4.4 percent drop in 2012. Portugal's will drop by 3 percent, Italy's by 1.3 percent and Spain's by 1 percent. Spain the fourth Eurozone economy now counts 5.65 million unemployed or nearly 25 percent of the active population. 50% of the young Spaniards are jobless.

The limits of austerity measures has reached its limits. There is a need for a REAL European policy for support and assistance for financing the needs of these countries. Resumption of growth in Southern Europe entails a relaxation of austerity measures coupled with the political will to challenge the demand from elements seeking unlimited public guarantee of bank debt, including private debt for years to come.

Reforms will take time and they will NOT work without financial support. Without stimulus Europe could sink into a "self-reinforcing negative spiral of growth-killing austerity".