For the past several years, EU politicians have been locked in shortsighted and often self-defeating policies for bailing out troubled euro zone countries. They have insisted (in principle, correctly) that troubled countries get their financial house in order as a condition for receiving bailout money. But the specific austerity measures chosen are killing any chance these countries have to grow, and therefore repay their lenders. This creates a vicious cycle, as the less borrowers are able to pay, the tougher the repayment terms get. Clearly, a new approach is desperately needed.