Saying “no” to austerity, Europeans marched in cities throughout the region Wednesday to protest government cutbacks in social systems and increased taxes meant to lift nations out of the European debt crisis. The big beef among European citizens is that they feel austerity punishes them for the billions that had to be spent to keep the financial system from collapsing. With demonstrations underway, a going to United States of America Treasury official implored European governing bodies to be careful that austerity does not derail a fragile global economic recovery.
Austerity gets a lot of attention
Hundreds of thousands of people marched in Europe because of an austerity protest Wednesday. Trade unions led the protests and had something to say, reports Reuters. They say that austerity really hurts the poorest of citizens as the economic recovery is slowed. Trade unions are mad about spending cuts and pension and labor market reforms. This is obviously shown in the protests which were organized in 12 European capitals. Banners were waving in Brussels, Belgium saying “No to austerity” and “Priority to jobs and growth” with a gathered crowd of 60,000 in Europe.
Austerity targets social products
The austerity protests in Brussels coincided with a proposal from the European Union Commission for new penalties that punish member states gripped by joblessness for running up deficits to fund cultural systems. As reported in the Huffington Post, the EU proposal, sponsored primarily by Germany, is receiving stiff resistance from France, which wants politicians to choose on sanctions, not a set of rules carved in stone. Greek doctors and railway employees simply walked to show what is happening in other European places. Trains and buses were shut down by Spanish workers. One man in Ireland used a cement truck to protest. He was protesting the bank bailouts in the country by blocking Irish parliament.
U.S. explains austerity is not supporting Europe much
Amid all the austerity protests, a top United States of America Treasury official going to Frankfurt implored European officials to exercise restraint. The Wall Street Journal reports that Americans and Europeans disagree about whether stimulus or austerity is the solution to a weak global recovery. . U.S. Treasury Undersecretary for International Affairs Lael Brainard said with weak global demand and low inflation, supporting a lasting recovery, not austerity, must continue as the primary objective.
Data from
Reuters
reuters.com/article/idUSLDE68S24620100929?type=marketsNews
Huffington Post
huffingtonpost.com/2010/09/29/spain-strikes-over-auster_n_743014.html#s146799
Wall Street Journal
online.wsj.com/article/SB10001424052748703431604575521833087264428.html?mod=googlenews_wsj
