Austerity economics won't save the euro or help European economies recover

Macro Business looks at Europe’s suicide pact 12/12/2011, and as the title indicates, doesn't see much hope of it saving the euro. On the contrary, the austerity policies on which it is based will make them worse:

The basis [basic?] issue I have with the entire plan is that for some odd reason, against ever mounting evidence, European economic policy is still being implemented on the basis of an ideology that using bailout loans and “expansionary fiscal contraction” is a workable economic recovery strategy for Eurozone nations that are bound to a non-deflatable currency. The periphery continue to prove this point wrong and even the IMF, and more recently the OECD, have admitted that the policy is failing in Greece. Yet despite this, all I can see that has come out of this latest summit is even more plans based on this same underlying premise.

Tags: eu, euro, european union