Why Euro Zone Crisis May Get Worse This Year: "Jean-Dominique Giuliani, who heads the Robert Schuman Foundation, a pro-European think tank in Paris, says difficult reforms must continue because the crisis shows no sign of going away. "Changes will now be constant and will demand a great deal of populations, overturn societies, surprise political leaders and unsettle experts," he said in a commentary on his group's web site. Charles Robertson, chief economist at Renaissance Capital in London, is among those wondering how much more voters are prepared to sacrifice. He expects Greece to quit the euro this year and says Spain might follow by the end of 2014. Spain has already endured one year of unemployment above 25 percent but will probably have to manage three more in order to meet the financial targets set by its international creditors. "No economy (as far as we are aware) has ever sustained this unemployment rate and maintained a peg to a fixed exchange rate,"Robertson said in a report. Most damaging of all, he said, was the absence of hope: "For households, wages are still likely to fall to boost competitiveness.Households are deleveraging and defaulting, not borrowing more to fuel consumption.""
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