Rehn Says Austerity Policy Not to Blame on Slow EU Growth

European Union Economic and Monetary Affairs Commissioner Olli Rehn said austerity policies shouldn’t be blamed for slow growth in the euro area and the long wait for economic recovery to turn into jobs.

The EU’s budget rules and “stability culture” are not standing in the way of long-term growth, Rehn said in a letter today to EU finance ministers, the European Central Bank and the International Monetary Fund. Studies on the harmful effects of budget cuts on the economy, through so-called fiscal multipliers, don’t always link to what’s happening in Greece and other crisis-stricken nations, he said.