Friday, October 24, 2014

Andiamo, Italiani!

While French Hollande is ready to negotiate for pro-austerity, "fiscal consolidation" if you will, others take serious steps for the best of the entire Eurozone's interest.

Mario Draghi is (claims to be) ready to take bold action against deflation threat (Reuters), and Matteo Renzi publicly denouncing budget cuts in a recessionary environment (Le Huffington Post). Both are in the trenches with Berlin.

At the same time, the rest of the leaders are conspicuous by their absence. I do not know anything about politics, but while the "fiscally sound" Eurozone failed to ram unemployment, an actual human index, the US did far more better job. The "cost" of fully recovering from recession was an approximately 9% of GDP additional debt burden for the US.


Hopefully, Euro leaders will realize that unemployment is far more important than fiscal soundness, before it's too late!