Europe turns on spending taps as austerity comes to an end

Press quote (Financial Times)
Christian Odendahl
09 February 2019

Christian Odendahl, chief economist at the Centre for European Reform think-tank, called for a comprehensive rewrite of the budgetary rules, which he argued amplified the booms and busts of the eurozone economy.“Europe’s fiscal rules do not allow enough stimulus in a recession, and allow too much spending during a boom,” he said. “An overhaul of the fiscal rules to protect investment spending and prescribe strongly counter-cyclical policies would help to counter the current slowdown.”