fiscal consolidation


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Does Greece need a third programme?

By Jens Bastian via MacroPolis | During his visit to Berlin this week, Prime Minister Antonis Samaras repeatedly emphasised that Greece does not require a third financial support programme. In his conversation with Chancellor Angela Merkel he highlighted that the Greek sovereign was able to successfully return to international bond markets in April after a three-year forced hiatus.


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Boosting growth is the only way of achieving fiscal consolidation

MADRID | By Luis Alcaide | In an op-ed at Wall Street Journal on Thursday, New EU Vice Commissioner Jyrki Katainen pledged for stimulating growth in the eurozone by keeping the proper fiscal consolidation. But his comment could be put in a different way: stimulating growth by all means as the only way of achieving fiscal consolidation. Stimulating growth means that deflation, a price level increase inferior to 2% (the Stability Pact target) is a more pressing requirement than meeting the 3% public deficit in the short term. 

 



Swedens loss of faith

Sweden’s loss of ‘faith’

SAO PAOLO | By Marcus Nunes | According to Per Bylund, “during the recent financial crisis, Sweden has emerged as one of very few financially sound economies.” However, now the country successfully rolled back its unsustainable but world-renowned welfare state.