Thursday, May 16, 2013
Hollande warns austerity could tear Europe apart
"Michael Meister, a key figure in Merkel's Christian Democrats, said: 'Italy and France have structural problems to resolve and not economic problems. 'They can't wait any longer. More time won't relieve the problem. It'll only make it worse.'Mr Hollande told a news conference in Paris that the financial crisis is now 'behind us', but predicted that widespread austerity measures could push the continent into a fresh disaster. 'What is hitting Europe is a recession provoked by the austerity policy,' he said. IMHO what is wrong is that "austerity" (or the need to balance the books) is falling on the wrong people (just like in Greece and Cyprus). Who will be helped by the new lower interest rates in Europe - banks or the people?