2013 May 01 « Dr Alf's Blog

Countries using the Euro de jure Countries and territories using the Euro de facto Countries in the EU not using the Euro (Photo credit: Wikipedia)

German Logo of the ECB. (Photo credit: Wikipedia)

This is an excellent article from Larry Elliot, Economic Editor at the Guardian. It’s strongly recommended for a read. Check it out!

via European Central Bank must heed eurozone warning signs | Business | guardian.co.uk.

Here are Larry Elliot’s conclusions:

For the past three years, macroeconomic policy in the eurozone has been run on sadomasochistic principles: that only regular doses of pain will ensure countries stick to strict reform programmes.

The upshot of this policy is clear for all to see. Businesses that are starved of credit are mothballing investment and cutting their workforce. Weaker growth means higher-than-expected budget deficits. Permanent austerity has bred social dislocation and political extremism. A different approach is needed to save the eurozone from catastrophe – starting on Thursday.

Personally, I agree with Larry Elliot.

What do you think?

Are you still an austerian?

All view welcome!

English: Locator map of the Baltic region – Estonia, Latvia and Lithuania and the russian Kaliningrad Oblast. Deutsch: Lagekarte des Baltikums – Estland, Lettland, Litauen und Oblast Kaliningrad. (Photo credit: Wikipedia)

This is an excellent article by Martin Wolfe, writing in the FT. It’s a recommended read. Check it out!

Why the Baltic states are no model – FT.com.

For me the conclusion is simple, a continued European policy of short-term austerity is not sustainable. Germany must allow the Eurozone to reflate and create a boom in Germany; the alternative is the collapse of the Euro.

via Why the Baltic states are no model – FT.com.