Do Relatório da OXFAM (XIII): "Austerity as an economic policy was designed primarily to reduce budget deficits, in order to restore market confidence and ultimately lead to job creation, growth and lower debt levels. As set out in the Maastricht Treaty, which created the European Union, the debt-to-GDP target for all countries should not be more than 60 per cent with a deficit-to-GDP ratio not exceeding three per cent. Many countries were therefore set a target by those institutions providing bailouts to reach these ratios by the financial year 2014-15. However, after almost three years of implementation, austerity is failing even on its own terms – increasing deficits in some countries72 and raising debt levels – let alone in terms of the huge, unevenly distributed human costs. The majority of EU countries have seen their debt-to-GDP ratios increase over the last four years.73 At the same time, deficits have not fallen fast enough, leading to extension of deadlines74 and potentially bringing about a downward spiral of weak or negative growth, ending in continued high deficits, deeper spending cuts, and little prospect for change. The promise of strong growth has yet to materialize in most countries.75"
Posted on: Thu, 12 Sep 2013 14:40:48 +0000
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