Are Italian voters right that austerity isn't working?

"Cutting public spending in a downturn is always risky, but it is especially so when all of Europe is tightening fiscal policy at the same time. The principal reason why public deficits have risen across Europe is because private sector demand has contracted sharply," says Simon Tilford of the CER.

"Put another way, fiscal deficits are the not the cause of the crisis but a consequence of it," he says, adding that "the European Commission grossly underestimated the impact of fiscal austerity programs of this magnitude."