In 2009 the Obama Administration pushed through a brazenly political restructuring of bankrupt General Motors and Chrysler, and huge payoffs were made to the United Auto Workers, a pro-Obama union, at the expense of bondholders.

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So the industry has the political muscle to stymie restructuring programmes.

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Noting that short-term fiscal balance can be restored fairly easily, while long-term fiscal restructuring will require strong political will and will probably have to wait until after the 2013 elections.

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Much of the early political reaction to the company's restructuring came from the affected states, particularly Michigan, where Ford is based.

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Also there is increasing political uncertainty in Germany over the Greek debt restructuring.

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All the same, governments whose citizens still have much to gain from restructuring often appear to lack the political will for it.

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In Europe, euro-zone finance officials and Greek political leaders agreed on a new bailout and debt restructuring for the Mediterranean country.

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The failure, caused by political hostility and weak nerves, has been a big blow to the cause of industrial restructuring in Germany, and to the idea that shareholders, rather than politicians, trade unionists and managers, should have the final say in a company's future.

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But we should also recognize that the restructuring process is just beginning, and will take considerable time, technical skill, and political resolve to complete.

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