De zware bezuinigingen in Europa leidt tot 'economische zelfmoord' en het einde van de huidige eurozone. Dat zegt Nobelprijswinnaar Joseph Stiglitz. "Een kern van de eurozone met alleen Duitsland en mogelijk Nederland en Finland is een waarschijnlijk scenario als het huidige besparingsbeleid wordt voortgezet", waarschuwt de bekende econoom. "Zware bezuinigingen in combinatie met de beperkingen binnen de euro is een dodelijke combinatie".
While euro-area leaders “realized that austerity itself won’t work and that we need growth,” no actions have followed and “what they agreed to do last December is a recipe to ensure that it dies,” he said, referring to the euro. “The problem is that with the euro, you’ve separated out the government from the central bank and the printing presses and you’ve created a big problem,” Stiglitz said, adding that “austerity combined with the constraints of the euro are a lethal combination.”
“I think Europe is headed to a suicide”
The economist said he sees a core euro area of “one or two countries” made up of Germany and possibly the Netherlands or Finland as the “likely scenario if Europe maintains the austerity approach,” he said. “The austerity approach will lead to high levels of unemployment that will be politically unacceptable and will make deficits get worse.”
"I think Europe is headed to a suicide...There has never been any successful austerity program in any large country," the former World Bank economist told a panel discussion in Vienna late on Thursday. Austrian radio on Friday broadcast some of his comments, which chime with a growing backlash in Europe against the German-led push for more fiscal discipline as the way to end the debt crisis. "Decreasing growth is causing the deficit, not the other way around. I think that austerity approach is going to lead to high levels of unemployment that will be politically unacceptable and make deficits get worse."