EU Governments Scramble to Cut Budgets |
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January 28, 2010
A growing number of European governments are rushing to announce spending cuts and medium-term plans to reduce budget deficits as they scramble to avoid the intense scrutiny Greece is enduring in the credit markets.
A growing number of European governments are rushing to announce spending cuts and medium-term plans to reduce budget deficits as they scramble to avoid the intense scrutiny Greece is enduring in the credit markets.
In doing so, however, those governments are feeding fears that premature belt-tightening could put the brakes on the European Union's economic recovery, weighing on consumer demand and threatening still-fragile confidence in economies across the 27-member bloc.
Going into 2010, the International Monetary Fund advised governments to keep their stimulus plans in place to ensure the recovery takes root. That advice was echoed by the Group of 20 leading nations.
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