Berlin and Brussels credit fiscal discipline and reform for eurozone recovery – FT.com

European Commissioner Olli Rehn

European Commissioner Olli Rehn (Photo credit: Wikipedia)

This is an important and MUST READ, article in the FT. Check it out!

via Berlin and Brussels credit fiscal discipline and reform for eurozone recovery – FT.com.

The article takes a balanced view of the Q2 Eurozone growth figures and the hype coming out of Berlin and Brussels.

Many people will be angered by Olli Rehn‘s opportunistic remarks. Olli Rehn has been the architect of excessive austerity in Europe, causing severe economic and social pain to millions of people. Most serious analysts will be looking for hard evidence of fiscal discipline and reform.

For sure, the Eurozone and the UK had a better Q2 growth performance than Q1 but it’s still a very long way from a sustainable trend. Unless, there is serious fiscal stimulation to increase demand in Europe, I would expect the growth trend  to be very lack lustre, with the misery of austerity continuing  for many millions. There are also fundamental concerns about the effectiveness of banks in Europe.

In short, this is good news for the top 1% but much more debatable for the “great unwashed”, the prevailing 99%.

Any thoughts?

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3 responses

  1. Pingback: My Top Twelve Blogs – Last Three Months « Dr Alf's Blog

  2. Pingback: More about Olli Rehn and Fairy Tales – John Gelmini « Dr Alf's Blog

  3. Pingback: Olli Rehn’s blog » Blog Archive » Recovery is within reach « Dr Alf's Blog

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