Monday, November 11, 2013
Gross capital investment by the public sector has dropped to just 3.6 per cent of US output compared with a postwar average of 5 per cent, according to figures compiled by the Financial Times, as austerity bites in the world’s largest economy. — (FT)

Gross capital investment by the public sector has dropped to just 3.6 per cent of US output compared with a postwar average of 5 per cent, according to figures compiled by the Financial Times, as austerity bites in the world’s largest economy. — (FT)

Friday, October 25, 2013 Monday, September 23, 2013

"An IMF report shows an apparent concern about excessive austerity," said Social Democrat spokesman Marco Antonio Costa.

"What I see is institutional hypocrisy on behalf of the IMF because these are reports underlying their concern, but then at the negotiating table … their attitude shows little flexibility."

Portugal Accuses IMF of ‘Institutional Hypocrisy’ Over Austerity - IBTimes UK

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Conditions Portugal Must Meet

Under the rules of the 2011 bailout, Portugal must cut its budget deficit to 5.5% of GDP in 2013 from 6.4% in 2012 and then just 4% in 2014.

These tough measures have been challenged by Deputy Prime Minister Paulo Portas, a member of CDS-PP junior coalition party.

Portas said that the government will try and persuade the creditors to ease the 2014 goal, which was relaxed for a second time in March 2013 to 4.5% of GDP.

The economy of Portugal grew in the second quarter of 2013 grew after 10 straight quarters of decline yet it is still expected to shrink by 2% over the whole of 2013. — (IBTimes)

Tuesday, April 9, 2013 Monday, April 1, 2013 Sunday, March 3, 2013 Thursday, September 27, 2012
How much more can Spain’s citizens, many who had no part in reckless lending and speculation, take?
The demonstrations yesterday tell us that they’re losing their patience.  

How much more can Spain’s citizens, many who had no part in reckless lending and speculation, take?

The demonstrations yesterday tell us that they’re losing their patience.  

Thursday, August 16, 2012
German Chancellor Angela Merkel renewed her call for austerity as crucial to tackling financial turmoil in the euro area, praising Canada’s economic example as she returned to the crisis fight after her summer vacation. (via Merkel Cites Canada as Debt-Deficit Model in Europe’s Crisis - Businessweek)
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Austerity will likely continue and could further worsen an already fragile investor climate as austerity-wrecked periphery countries remain in the throes of a debt trap.

German Chancellor Angela Merkel renewed her call for austerity as crucial to tackling financial turmoil in the euro area, praising Canada’s economic example as she returned to the crisis fight after her summer vacation. (via Merkel Cites Canada as Debt-Deficit Model in Europe’s Crisis - Businessweek)

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Austerity will likely continue and could further worsen an already fragile investor climate as austerity-wrecked periphery countries remain in the throes of a debt trap.

Thursday, August 2, 2012 Wednesday, May 30, 2012 Tuesday, May 29, 2012
(via Spanish Retail Sales Fall 9.8% In April - Business Insider)
Largest drop in its history.  
Wednesday, May 16, 2012
While the anti-bailout SYRIZA party appears to be gaining support, the results of the election are anybody’s guess. Ultimately, the decision will rest on EU leaders ability to convince Greek voters that this is a vote for the euro and not for austerity, as analysts estimate that 70-80 percent of Greeks say they would like their country to continue to be part of the eurozone. (via IT’S OFFICIAL: Greece’s Fate Could Be Decided On June 17 - Business Insider)

While the anti-bailout SYRIZA party appears to be gaining support, the results of the election are anybody’s guess. Ultimately, the decision will rest on EU leaders ability to convince Greek voters that this is a vote for the euro and not for austerity, as analysts estimate that 70-80 percent of Greeks say they would like their country to continue to be part of the eurozone. (via IT’S OFFICIAL: Greece’s Fate Could Be Decided On June 17 - Business Insider)

Thursday, May 10, 2012
(via Merkel resists calls to put growth before reforms - chicagotribune.com)
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Recent news; such as the Bundesbank softening its stance  on inflation, the EU relaxing stringent deficit rules, as well as support for wage increases in Germany to support domestic demand, are signs that Germany is getting the message from the rest of Europe, growth must accompany austerity measures.  
However, Merkel made clear again today that there will be no Eurobonds.  As I said here, “we’ll budge here and there, but we’re not fundamentally changing our fiscal stance.  No Eurobonds or a backtrack of austerity.”  
Maybe it’s Germany sounding tough, but not backing it with action.  In fact, we are seeing a trend of Germany extending more of a helping hand.  The Bundesbank softening its stance on inflation is a big deal (a fundamental change in monetary stance).  Perhaps this is setting the stage for monetary easing from the ECB while fiscal adjustments take place.  
Furthermore Merkel is actually getting heat at home for not extending growth measures to the rest of Europe.  The North Rhine-Westphalia election in 3 days will be interesting to see if Germans may be changing their mood to further austerity.     

(via Merkel resists calls to put growth before reforms - chicagotribune.com)

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Recent news; such as the Bundesbank softening its stance  on inflation, the EU relaxing stringent deficit rules, as well as support for wage increases in Germany to support domestic demand, are signs that Germany is getting the message from the rest of Europe, growth must accompany austerity measures.  

However, Merkel made clear again today that there will be no Eurobonds.  As I said here, “we’ll budge here and there, but we’re not fundamentally changing our fiscal stance.  No Eurobonds or a backtrack of austerity.”  

Maybe it’s Germany sounding tough, but not backing it with action.  In fact, we are seeing a trend of Germany extending more of a helping hand.  The Bundesbank softening its stance on inflation is a big deal (a fundamental change in monetary stance).  Perhaps this is setting the stage for monetary easing from the ECB while fiscal adjustments take place.  

Furthermore Merkel is actually getting heat at home for not extending growth measures to the rest of Europe.  The North Rhine-Westphalia election in 3 days will be interesting to see if Germans may be changing their mood to further austerity.