Europe roiled with strikes and marches as citizens protested austerity measures–which include cutting cultural services and increasing taxes–which governing bodies are enforcing as they try to climb out of the European debt crisis. At issue for Europeans is the truth that the austerity measures impact the rank and file when billions were spent to prop up failing banks. Meanwhile, a top United States Treasury official warned European governing bodies that economic recovery, not austerity, should be the priority.
Masses around the austerity
A day of austerity demonstrations was shown all throughout Europe on Wednesday. There was a march throughout Europe with hundreds of thousands of people. Reuters reports that the protests were led by trade unions, which say austerity will slow economic recovery and punish the poorest citizens. 12 European capitals had protests in them organized by trade unions in order to say they did not like the thought of spending cuts and pension and labor market reforms. In Europe, there was a crowd of about 60,000 in Brussels, Belgium waving their banners in protest. These banners said things like “Priority to jobs and growth” and “No to austerity.”
Austerity centered on changing social systems the most
There is one major reason that the austerity protests in Brussels are happening. It is because member states with high unemployment are running up deficits to fund their social systems which lead the European Union Commission to come up with the proposal of penalizing these member states. The Huffington Post reports that the EU proposal is something that Germany supports the most. Of course, that means that the country of France disagrees with it. France does not like the idea of strict rules deciding things and thinks that is should really just be sanctions. Elsewhere in Europe, Greek doctors and railway employees walked out. Trains and buses were shut down by Spanish workers. One man in Ireland used a cement truck to demonstration. He was protesting the financial institution bailouts within the country by blocking Irish parliament.
United States of America advises less austerity actions in Europe
A top United States of America Treasury official visited Frankfurt through the austerity demonstrations. He urged Europe to slow down a bit on things. There is a huge debate between the U.S. and Europe about what the real solution to the global economic crisis is. The Wall Street Journal reports that the debate is between austerity and stimulus. Europe just wants to cut spending and increase taxes while the United States says doing a stimulus is the only way to go. U.S. Treasury Undersecretary for International Affairs Lael Brainard said with weak global demand and low inflation, supporting a lasting recovery, not austerity, must continue as the primary objective.
Citations
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
