Roubini : Fiscal austerity pushing the Eurozone periphery into economic free-fall

Nouriel Roubini : ....Meanwhile, not only is fiscal austerity pushing the Eurozone periphery into economic free-fall, but the loss of competitiveness there will persist as relief at the waning prospect of disorderly defaults strengthens the euro's value. To restore competitiveness and growth in these countries, the euro needs to fall towards parity with the US dollar. And, while the risk of a disorderly Greek collapse is now receding, it will re-emerge this year as political instability, civil unrest, and more fiscal austerity turn the Greek recession into a depression.