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http://hosted.ap.org/dynamic/stories/E/EU_EUROPE_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-04-22-11-52-45
LONDON (AP) -- The austerity pain pursued by a number of European countries led to very little gain in 2012.
Figures Monday from Eurostat, the European Union's statistics office, showed that many of the countries hit hardest by Europe's financial crisis, such as Portugal and Spain, saw their budget deficits increase last year - even though they have pursued strict austerity policies designed to get their public finances back into shape.
Though Europe's combined deficit level fell during the year - largely thanks to Germany swinging into a budget surplus - countries continue to reel from the impact of austerity. The overall debt of the 17 EU countries that use the euro rose from 8.2 trillion euros ($10.7 trillion) to 8.6 trillion euros as the region sank back into recession.
After the European crisis over too much debt broke out in late 2009, the region's governments slashed spending - either to meet conditions for bailout loans, or to reassure jittery bond markets. But austerity has also inflicted severe economic pain. Slashing spending and raising taxes have proved to be less effective at reducing deficits than initially thought - and perhaps counter-productive. As economies shrink, so do their tax revenues, potentially making it harder to close budget gaps.
***color me shocked
LONDON (AP) -- The austerity pain pursued by a number of European countries led to very little gain in 2012.
Figures Monday from Eurostat, the European Union's statistics office, showed that many of the countries hit hardest by Europe's financial crisis, such as Portugal and Spain, saw their budget deficits increase last year - even though they have pursued strict austerity policies designed to get their public finances back into shape.
Though Europe's combined deficit level fell during the year - largely thanks to Germany swinging into a budget surplus - countries continue to reel from the impact of austerity. The overall debt of the 17 EU countries that use the euro rose from 8.2 trillion euros ($10.7 trillion) to 8.6 trillion euros as the region sank back into recession.
After the European crisis over too much debt broke out in late 2009, the region's governments slashed spending - either to meet conditions for bailout loans, or to reassure jittery bond markets. But austerity has also inflicted severe economic pain. Slashing spending and raising taxes have proved to be less effective at reducing deficits than initially thought - and perhaps counter-productive. As economies shrink, so do their tax revenues, potentially making it harder to close budget gaps.
***color me shocked
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