European countries to be allowed to ease austerity

[dipsydoodle]

Source: BBC News

The European Commission has said it will allow some EU member states to slow their pace of austerity cuts, amid concerns over growth.

France, Spain, Poland, Portugal, the Netherlands and Slovenia are all being given more time to complete their austerity plans.

France will get two more years to bring its budget deficit below 3% of GDP.

Commission president Jose Manuel Barroso said the extra time must be "used wisely" to lift competitiveness.

The measures came as part of the European Commission's country-specific recommendations.

Read more: http://www.bbc.co.uk/news/business-22704729

[sulphurdunn]

1. Of course!

It's the old kick 'em in the face until they beg for mercy, then kick 'em in the ribs and tell 'em how grateful they should be that you heard their plea and aren't kicking 'em in the face anymore.

[dipsydoodle]

3. Its not quite like that.

It could be expressed as "you pays your money and you takes your choice"

In some instances its a matter of whether or not they get access to low interest loans bailouts. Such loans are based on ability to repay. All affected countries, other than maybe Cyprus at present, have access to higher rate funds on the international market should they chose them in preference to using the ECB.

Whether or not the ECB will be able to continue that program, which is largely funded by German taxpayers, remains to be seen this coming September when Germany has its Federal Elections.

[sulphurdunn]

4. It's not quite like that either.

I think it's more like, "you pays your money and picks your poison. You can pick fast acting or slow."

[dipsydoodle]

5. In this case

all that's really happening is that pre-agreed time scales have been relaxed which presumably will let affected countries spend more to lower unemployment in their private sectors.

[sulphurdunn]

6. I suppose you're right.

My problem is I can't get my head around the idea that Europe is no longer comprised of sovereign nations but just global financial properties.

[DJ13]

2. Its a little late

The eroding economies there are due to the austerity already in place.

Just slowing the adoption of further austerity measures wont improve those economies, it will merely stagnate them in their weakened state.