Editorial Board
Enough Already With the Strict Austerity in Europe
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Europe’s economy is likely to shrink this year and to see little or no growth in 2013. Please note: That’s if all goes well. The International Monetary Fund’s dismal new forecasts assume -- or let’s say hope -- that Europe’s plan for restoring stability will soon take effect. Don’t take this for granted.
Output in the euro area will shrink 0.4 percent this year and rise by just 0.2 percent in 2013, according to the new projections. The outlook has worsened since the IMF released its previous forecasts just three months ago. And the risk is that it will worsen further.