Austerity measures lower purchasing power

The European states moved a little closer to each other politically at the euro bailout summit, but the economic problems of individual states continue, admonishes the left-liberal daily De Morgen: "Under the pressure of the crisis Europe has taken a step towards further political integration. The individual countries have given up another bit of their autonomy and accepted close reciprocal supervision whereby each country must design its budget according to the same standards and norms. ... But the problem is that there is no sign of how to give the economy a new boost. On the contrary: drastic austerity measures to reduce the sovereign debt of European countries are likely to have a negative impact on purchasing power, investments and growth. As far as financial policy is concerned, things are looking rosier, but economically too little has been resolved."

» full article (external link, Dutch)
More from the press review on the subject » EU Policy, » Fiscal Policy, » Europe
All available articles from » Yves Desmet
Who's saying what » Ways out of the debt crisis

» To the complete press review of Friday, October 28, 2011