The implementation of the austerity measures in the Eurozone debt crisis: The light at the end of the tunnel or a step towards the abyss?

Abstract

In this article, the author indicates the reasons why the austerity measures have failed to resolve the problems of public debt increase and recessions in the Eurozone periphery countries. The main cause for inefficiency of these measures should seek in incorrect diagnosis of the root of the current financial crisis in Euro area. More precisely, above mentioned cause should search in incomprehension of the austerity policy creators that the crisis is a product of cumulative consequences of constraints and weaknesses of the European Monetary Union (EMU), rather than irresponsible and wasteful behavior of the public sector of some EMU member states.

U ovom radu autor ukazuje na razloge zašto mere štednje nisu uspele da reše pitanje rasta javnog duga i recesije u zemljama periferije Evrozone. Glavni uzrok za neefikasnost ovih mera treba tražiti u pogrešnoj dijagnozi korena trenutne finansijske krize na evro prostoru. Preciznije rečeno, pomenuti uzrok treba tražiti u nerazumevanju tvoraca politike štednje da je kriza proizvod kumulativnih posledica ograničenja i slabosti Evropske monetarne unije (EMU), a ne neodgovornog i bahatog ponašanje javnog sektora njenih pojedinih država članica.