Spain should be restructuring its debt right now, Matthew Lynn, founder of Strategy Economics, told CNBC's "European Closing Bell," suggesting a 50 percent haircut on Spanish sovereign debt holdings now in order to get the country back on track.
“The problem in Spain is that they’re just following exactly the same path as Greece – which is to insist on austerity; to make cuts; to push through structural reform, and hope that the structural reform comes through in time to generate enough growth to get the economy moving again,” Lynn said.
“But it didn’t work in Greece. It hasn’t worked in Ireland or Portugal. And it won’t work for Spain,” he added.
The trouble is that austerity measures destroy the ability to stabilize