Baltic is proof that austerity helps

The risk of a prolonged recession above all comes from the countries of Southern Europe, which are in dire need of structural reform, the liberal-conservative daily Neue Zürcher Zeitung contends, praising the reform efforts in the Baltic region: "The Baltic states have done extraordinarily well in the last few quarters. This is the fruit of recent reforms. In the face of the latest financial crisis Estonia, Latvia and Lithuania have had to make painful internal revisions, and thanks to falling salaries and prices - in combination with flexible labour markets - they have found their way back to the path of recovery. Such success stories should be borne in mind when complaints that the problem countries are crumbling under the pressure of enforced austerity programmes grow loud. Because the fact is there is no alternative to the austerity policy, which together with reform measures must boost the competitiveness of the individual economies in the long run."

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