Large public demonstrations were staged across Europe Wednesday in demonstration of government austerity measures. To recuperate from the European debt crisis, governments there are scaling back the cultural safety net and boosting taxes. At issue for Europeans is the fact that the austerity actions impact the rank and file when billions were spent to prop up failing banks. Meanwhile, a top United States of America Treasury official warned European governing bodies that economic recovery, not austerity, should be the priority.
Austerity pulls a crowd
In a day of austerity protests on Wednesday, hundreds of thousands of people marched throughout Europe. As outlined by Reuters, trade unions were those who begun the demonstrations, and they say the poorest of citizens can be hurt one of the most through the austerity that will slow the economic recovery. 12 European capitals had protests in them organized by trade unions in order to say they did not like the idea of spending cuts and pension and labor market reforms. 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.
Cultural products would be the target of austerity
The European Union Commission proposed that there be penalties punishing any member states that have joblessness rates high and are running up deficits to fund social programs, which is what caused the Brussels austerity protests. As reported within 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. Spanish workers made their statement too. Buses and trains were shut down. In Ireland, a man blocked the Irish parliament with a cement truck in protest of the country’s massive bank bailouts.
United States explains austerity is not helping Europe much
Amid all the austerity protests, a top U.S. Treasury official going to Frankfurt implored European officials to exercise restraint. There is a large debate between the United States of America and Europe about what the real solution to the global economic crisis is. The Wall Street Journal reports the debate is between austerity and stimulus. The United States of America firmly believes that a stimulus will work the best. Europe disagrees getting more and more spending cuts and increases in taxes. The weak global demand is best fixed with the support of the lasting recovery instead of austerity, states Lael Brainard. Brainard is the United States Treasury Undersecretary for International Affairs.
Articles cited
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
