Has the EC softened its stance on austerity?

Recent hints that the European Commission could grant further extensions to governments that are missing their deficit targets provide hope that the Commission will not force austerity regardless of the economic damage. But even without additional measures to rein in borrowing, the fiscal squeeze that is already planned will act as a very heavy drag on activity in the coming months.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.