Analysis: No simple answer to EU growth vs austerity conundr 
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Analysis: No simple answer to EU growth vs austerity conundrum

News Link  •  European Union

Analysis: No simple answer to EU growth vs austerity conundrum


04-16-2012  •  http://www.reuters.com, By Paul Taylor 
 (Reuters) - Fierce debate is growing in Europe over whether austerity or growth offers the best strategy to overcome the continent's sovereign debt crisis. As if it were that simple. 

As the euro zone hovers on the brink of its second recession in three years, the battle launched in academic journals, blogs and the financial press has spread to the hustings in France, Greece and soon in EU economic powerhouse Germany too.

 
"Europe can't cut and grow," Sony Kapoor, head of the Re-Define think-tank, and Peter Bofinger, a member of the German Council of Economic Advisers, said in an article before European Union leaders adopted a budget discipline pact last month.
 
"The EU needs a growth compact, not a fiscal one. Swift action on tax and jobs is the way out of the crisis."
 
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Reported by Robert Lee

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Comments in Response

Comment by: Powell Gammill (#013871)
   Entered on: 2012-04-16 10:44:19

Come on, spend your way out of debt!  Austerity means less of your earnings for those responsible for looting your wallet in the first place.  Can't have that!

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Tags: reuters, fierce, debate, growing, europe, whether, austerity, growth, offers, strategy, overcome, continents
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