Saying “no” to austerity, Europeans marched in cities around the continent Wednesday to protest government cutbacks in cultural products and increased taxes meant to lift nations out of the European debt crisis. Europeans are upset that while governments spent billions to rescue banks, ordinary citizens were being forced to accept the consequences of austerity. With demonstrations underway, a going to United States Treasury official implored European governments to be careful that austerity doesn’t derail a fragile global economic recovery.
Austerity draws a large group
In a day of austerity protests on Wednesday, hundreds of thousands of people marched throughout Europe. According to Reuters, trade unions were those who begun the demonstrations, and they say that the poorest of citizens will be hurt the most via the austerity that will slow the economic recovery. Trade unions organized protests in 12 European capitals to demonstrate against 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.
Austerity focuses mainly on cultural systems
There is one major reason the austerity demonstrations in Brussels are happening. It is because member states with high unemployment are running up deficits to fund their cultural 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 doesn’t like the thought of strict rules deciding things and thinks that is should actually just be sanctions. 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. One man in Ireland used a cement truck to protest. He was protesting the financial institution bailouts within the country by blocking Irish parliament.
Europe told to ease austerity down a little by United States
A top U.S. Treasury official visited Frankfurt throughout the austerity protests. He urged Europe to slow down a bit on things. The Wall Street Journal reports that Americans and Europeans disagree about whether stimulus or austerity is the solution to a weak global recovery. The United States firmly believes that a stimulus will work the best. Europe disagrees getting increasingly more spending cuts and increases in taxes. 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.
Details from
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
