An Austerity Success Story in Slovenia
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June 4 (Bloomberg) -- Germany’s approach to repairing theeuro area’s finances, by holding the feet of fecklessgovernments to the fire and forcing them to make difficultadjustments, has lately fallen out of favor. The case ofSlovenia, though, suggests the tough-love strategy might yethave some merit.
Austerity has become a bad word in the euro area. It isblamed for an ever-worsening recession and, in some countries, asignificant drop in living standards. When the European Unionannounced last week that it would give Slovenia and other euro-area countries more time to achieve deficit-reduction targets,analysts breathed a collective sigh of relief.