The ECB's Mario Draghi says there are unlimited funds available to the Eurozone nations, but it is upto the individual governments if they wish to borrow from the ESVF funds. This programme has only been announced by Dr Draghi today, and no doubt the various governments will weigh up their options. Such funds may provide the stimulus for growth.
There is a small town in Spain that specialised in making doors, called Vallancana. When the construction boom was in full force, it provided full employment to 8,000 people. Today, with the construction slumber, it employs 4,000 persons. The unemployment demographics reflect the national averages for Spain, nearly 25 percent of the adult population, nearly 50 percent of the school and college leavers. What else should they be manufacturing? If the construction boom has come to a stop in Spain, could they possibly find export markets? Would they be competitive? Or should they perhaps examine some new industries, and see the viability of those to create employment? Isn't there a market for doors in the Eurozone? Brainstorming such ideas might get some results.
Houses and offices are being repossessed in Vallancana, people unable to service their mortgages. Perhaps the newly organised banks could provide short-term reductions and allow people to hang on to their houses? Houses when occupied and heated and receiving tender loving care remain valueable assets; once foreclosed, lying cold and empty and uncared for, they become toxic assets. It is in the banks' interests to ensure they remain valueable assets, while helping the hard-pressed owners also keep their investment and pride. Such a solution in the long term will prove a blessing to heal the housing market, everywhere.
The Eurozone nations must examine the specialities produced in different areas, and see if they could be marketed elsewhere. With a pan-European approach of co-operation and increased trade, maybe a growth plan can emerge.