Deflation crisis in Europe

Summary:      Europe already has one foot in ‘Japanese’ deflation grave

Ambrose Evans- Pritchard writes in his article, published in The Telegraph on October 23th 2013, about Europe’s inflation crisis and how policy errors increase debt. He describes Europe as the world’s next epicenter of policy errors. Consequently, deflation becomes lethal for most of Western Europe. Many countries, for example France, Italy, Spain etc. have seen price falls and are now standing with one foot in deflation. The Eurozone is close to the danger of exploding dept ratios. Using the example of Italy there are two options to get out of this dilemma - return to the lira or increase the primary budget to 6.3% to stabilize debt, which is unrealistic. Over the past two years, Italy’s debt has jumped from 121% to 132% - this ‘denominator effect’ happens when debt rise faster than the nominal GDP. It is not only the public debt, but also the private debt which causes problems. Companies run down their liquid assets to stay in business. The author proposes a possible break out of this impasse with Club Med forcing Germany to accept inflation. He says once you let deflation lodge in your system, it takes heaven and earth to get out of it.

My comments:

I like the topic sentence. However, there is no space between names that are joined with a hyphen.
The second sentence more or less repeats what you have said already, so it is kind of redundant. I would lose it.
The ext mistake that caught my eye is this part: "increase the primary budget to 6.3% to stabilize debt". I do not think, "to 6.3%" is unclear. First of all, it would be "by 6.3%". Secondly, 6.3% of what? 

debt rises

The last couple of sentences in your paragraph do not link very well. I can see your bullet points.

Again I do like the last sentence. Even though, I am not sure whether or not the register is right.