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According to the New York Times, unfortunately, European governments have extended national programs to keep troubled businesses afloat, but the aid may only be postponing the inevitable demise and ultimately making things worse in the future.


  1. According to the article, this recession in France and other European countries is the worst since when?
  2. If European governments had not intervened, what is the estimate of the number of European business failures during last year?
  3. What is the size of the rescue package proposed in the U.S. by President Biden?
  4. According to Jeffrey Franks at the IMF, why is it important to let unviable companies go bankrupt?


Alderman, L. (2021). Europe’s Bankruptcies Are Plummeting. That May Be a Problem. The New York Times, Jan. 25 (Retrievable online at