Australian Budget Prices Shrinking Euro-Area Economy, Swan Says

Australia’s federal budget, targeting a return to surplus next fiscal year, is taking a conservative view of Europe’s economic outlook, forecasting a 0.75 percent contraction this year, Treasurer Wayne Swan said.

“Determined, consistent and continuing action will be required by European policy makers to deal with the sovereign debt crisis, get their budgets back on a sustainable footing, and restore growth,” Swan said in his weekly economic note. Australia’s “budget takes a conservative view of Europe’s economic outlook, with the euro area forecast to contract by 3/4 of a percent in 2012.”