Document type: Interview
Pastor Bodmer, Alfredo
Geographic area: Spain
Some euro zone countries face the dual problem of a lack of competitiveness and unsustainable debt, says IESE's Alfredo Pastor. Spain, one of the worst countries affected, would need to devalue by 20-30 percent while also generating a primary surplus of 1-3 percent of GDP for up to 20 years, an almost impossible task. The only solution is for these debts to be either restructured or guaranteed by fellow euro zone members.
Bibliographic citation: IESE; IESE Insight, "Double Trouble"