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I borrow more European countries are now falling back into recession and as austerity measures failed to revive their economies.
How -- we change policy going for dole should wait joining me now is Matthew -- chief executive of strategy economics and a columnist for MarketWatch -- Matthew.
It seems to me there's an austerity backlash going on in Europe.
The question is will Germany ever -- in its view all of budget restraint.
Democrats and that's the big question in regard we -- -- presidential -- coming up their phones of the weekend as you probably night.
That's likely to run by the socialist Francois along these.
He made a -- key a key campaign pledge that he was to take back against austerity.
We see in the Spanish Spanish back in recession.
Officially this week the Spanish government is saying hey you know that it's -- the Dutch government.
As fallen that they the current us governor got a -- French government that because of the austerity packages.
So I think you know the kind of German view that -- -- have you know austerity the album in years I've been the government -- -- as part of the government -- -- nine -- wrong.
That was part of the number not the entire problem and it's not -- -- I mean that this that is about anymore more austerity across a cause problems.
And that -- country and they'll best up like structural reform that's all good getting deficit under control.
That's all good -- it is situation where economies and recession -- -- the making the situation was.
Right MSCI what's been inching up to this point I think the relationship between Angola Merkel of Germany and and Sarkozy of France is really kinda kept this thing together is Sarkozy goes.
What kind of relationship -- we expect between Merkel and -- -- And -- that's not very good -- that's pretty fractious what does that do to the Euro as a whole.
Whether I think come on that mean if the polls are right and -- all the -- -- along is gonna win that we're gonna saucy if you file exciting next week.
And as you say you know -- daisy ad and I'm not gonna be really key to -- this you know you -- prices have the last two years.
They pretty much had -- united front of fund manager that had disagreements behind the scenes.
Admitting you have you know what Carlton -- -- France and Germany agreed that the two big countries about a that they -- -- united and they can just about keep us on the right.
But there's not much evidence of -- not -- there's not in the it in in the in the bond markets.
Get -- -- five and that that's not gonna be but that's -- communities have to get relations gentlemen that dividends and political spectrum.
But also as we decide -- -- long -- as kind of placed himself.
That's kicking back against austerity that -- -- -- right manages the Germans are gonna like it I mean the German the Germans kind of -- to the needs of that that's among the big austerity retirement if they're not getting it.
You know who dies with the Germans accepted I think and then today they probably will put out there and very reluctantly put a lot of protests lot of tensions -- of -- of people walking yet.
All the try to stop the markets -- Matthew about.
Thirty seconds tops Spain do you believe Spain is gonna need a bail out and is it too big to -- -- too big to fail.
How about thirty seconds none of our kidding about that and -- -- what is -- okay and whether that what vegetarian -- Is what they didn't doing great in Greece which is restructure the debt that they -- they've.
They they wasted two years have ever crisis and -- today in Greece.
What they finally we start to the debt what is that you do in Spain is is it that NASDAQ went on really -- instead we get a restructuring that.
-- and -- by the two years a crisis that would be a big relief for after what.
Indeed it would all right thank you so much Matthew -- MarketWatch had joining us from London this -- and Matthew thank you very.
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