Divided Europeans caught in vise of austerity

Divided Europeans caught in vise of austerity

Written by Simon Tilford, 24 April 2012

Simon Tilford, the chief economist at the CER, said countries were being forced to impose fiscal austerity at precisely the wrong point in the economic cycle. "If they attempt to meet fiscal targets, investors punish them because they worry about growth; and if they ease austerity, markets get concerned about the long term sustainability of their finances. ... They're damned if they do and damned if they don't."