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Does Europe need more austerity?

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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.

 

 
 
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