Austerity is not Enough
OFCE le blog has posted the English translation of an article I wrote with André Grjebine a few weeks ago, for the French daily Le Monde. We commented the Standard & Poor’s downgrades, developing the points I had made here.
I maintain that the motivation of S&P marks a turning point in the debate on EMU governance. It was the first time that a major market participant explicitly challenged the priorities that the German leadership is imposing to Europe.
The current discussion on the Greek austerity plan shows that markets are joining those who preach to the desert.