1) Recent elections in France and Greece showed strong support for candidates opposed to austerity policies, as voters have lost jobs and had enough of austerity measures. 2) The austerity measures initiated in European countries to address tough economic times have not worked and have only made the economic depression worse by reducing spending. 3) Krugman suggests the euro should be abolished so troubled economies like Greece and Spain could devalue their currencies to restore competitiveness and exports, pointing to Iceland's recovery after allowing its banks to fail and devaluing its currency.