Austerity is not the solution! [antikvár]

Ernst Stetter, Secretary General, Foundation for European Progressive Studies, Belgium Austerity is not the solution! Elements of an effective European Economic Governance Keynes teaches us that we should not slow down growth in periods of already sluggish growth! Persistently urging austerity measures and cuts from the most affected Eurozone countries in the South is not the appropriate policy. At the root ofthe current European economic crisis are the macroeconomic imbalances within the Eurozone. What are the consequences of this verdict? Austerity will deepen these imbalances. The countries in the South of Europe (but also others) will probably go through further tough periods in the near future. These countries will not be able to recover, because there is a lack of coherent European economic policy and coordination. Therefore a missing effective European Economic Governance. The crisis has shown two major problems ofthe political, economic and fiscal architecture ofthe European Union. This should teach us that we have the responsibility to develop solid and effective responses in order to provide alternatives to the current austerity policies in Europe. Action to reduce the deficit or a substantial current account deficit in one country usually involves increasing exports or decreasing imports. Firstly, this is generally accomplished directly through import restrictions, quotas, or duties, or subsidising exports. The emphasis lies on the short term. However in Europe we have a single market, so restrictions, quotas, subsidies from one member state to Austerity is not the Solution 11