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Does Europe need more austerity?

Channel:
Politics  /  Economics  /  Crisis


european crisis

Source: Composite image by G_marius

There are strong supporters and opponent of the austerity measures implemented during the crisis. 

More austerity?

The European financial crisis and the challenges faced by the European currency countries have serve are justification to push forward austerity policies in most EU member states. In economics, austerity refers to policies used by governments to reduce budget deficits usually linked to adverse economic conditions. These policies include spending cuts and tax increases. Several  countries, such as Ireland, Greece, Portugal and Spain, applied important austerity measures to redress difficult financial situations they underwent during the recent European sovereign-debt crisis. However, these austerity policies do not seem to have produced the same effects across countries. Some economists and policy-makers claim that more austerity is necessary in Europe, while others point at austerity measures as aggravating factors for the crisis.

 

 
 
Do you think Europe needs further austerity measures?  Tell us your views and share any evidence you may find relevant.


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#12  |  Antoine  24 September 2014 @ 18:46    Karl van der Bal  (#11)

I don't believe that public system is systematically less efficient than private. And what about people with previous conditions? In a private system, if you already had some kind of disease, the insurance won't cover you, because you are more likely to have the same problem, or other medical problems related to this previous one. Or they make you pay enormous amount of money. Being sick is not the same as being a bad driver. It's not your fault (most of the time), so it's not fair to take only a private profit view on the subject.

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#11  |  Karl van der Bal  24 September 2014 @ 05:14

It's private investment and competition (incentivized by profit) that have made our lifestyles affordable eg. cars, medicines, flights, energy, food and just about everything of importance I can think of. Meeting the needs of consumers better at lower prices! Saying that government can magically make things more affordable by some wave of the magic wand is an untrue statement as ultimately the cost is passed on to the taxpayers. And when countries are running massive deficits to fund a system then You don't really have a sustainable system. Finally I fail to see how a system that is more 'efficient' could be significantly more expensive on a per unit basis.


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