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Back in November 2010, Aviva set out a strategy of focusing on 12 core countries.
The lack of demand from the periphery is affecting also the core countries.
All the core countries, notably Germany, must support it if market confidence is to be maintained.
Most authors of these treatises and projects were trained in the respective core countries.
In core countries, notably Germany, this fiscal consolidation is voluntary, even masochistic.
That may not happen in Europe — but only if the core countries pay the price.
No sooner had the core countries agreed to this deal than they started having remorse.
The economies in the core countries have plenty of slack, as prices are barely rising.
For smaller countries this means preparing to exit, for core countries it means accepting decisive changes to dysfunctional monetary arrangements.
In return for this, the core countries would pay for a big write down in debts in the peripheral countries.
Risks have decreased all across the board, for core countries and those in the periphery, Draghi adds.
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