Wednesday, April 25, 2012

European Austerity - Will the Tide Turn now?

With UK in double dip and a Socialist still on track to unseat a sitting Conservative President in France; no wonder Merkel is on defense. Just may be, finally common Europeans are 'seeing through' the non-sense of one sided austerity while ignoring growth inputs.

To be sure, Europe still needs to loosen up stringent labor laws. But above all, what it needs is not lurching to extreme - as like in UK where Cameroon Government gave tax breaks to rich during recession while Hollande is waging a jihad against rich with draconian 75% taxes. Monetary easing, partial resource transfer from few remaining rich Europeans (like Germany & Dutch) to rest of European Economies in recession, targeted public spending and simultaneous loosening of rules and regulations; all that is needed to bring growth back. 

It is European Politicians who are missing to strike the balance and apply specific remedies needed in each national economy. They are simply not truthful and honest about what is needed to do, no different than our politicians back home.

No comments: