Greece’s current account deficit in the red

In the first major financial crisis of the 21st century which erupted in 2007-2008, and whose tsunami reached Europe's shores in 2010, five European countries failed to avoid bailouts: Greece, Ireland, Portugal, Cyprus and, in part, Spain. Of these, only one, Greece, had twin deficits - in its current account and its budget. The other four suffered from only one large deficit in their current accounts, but that was still enough, with the outbreak of the crisis, to throw them against the rocks.

The balance of payments reflects the structural problems of an economy, which are summarized in its low overall productivity and, therefore, low international competitiveness. The services of the European Union monitor it closely to detect possible risks to the macroeconomic balance of an economy. They have in fact developed and use an indicator: When a country's current account...