An Odd Time For Another Euro Crisis

It is ironic that Greek secession from the single currency has moved centre stage just as its economy, and other 'peripheral' euro area economies, seem to be turning the corner.

Four weeks ago we wrote about the "extraordinary adjustment" that has occurred in the Greek economy over the last five years. Public expenditure has fallen by 30%, the public sector deficit has been cut faster than in any other industrialised economy and competitiveness has been boosted by lower wages and consumer prices.

Although Greece is dominating the headlines currently, Ireland, Italy, Portugal and Spain have also been through years of economic upheaval. With the exception of Italy, all of these countries received bail-outs to stave off bankruptcy, and had to endure years of austerity and policy-reform as a consequence.