Brussels, Berlin tell Europe to stick to austerity

The European Commission has called on EU nations to stick to their promised budget cuts despite voter discontent in France and Greece, but promised new efforts to boost growth to alleviate economic hardship.

Despite mounting voter discontent, EU nations urged to hold to agreed budget cuts

The threat by the EU to impose huge tariffs on solar panels from China has run into staunch opposition. The Financial Times reports Germany warns EU solar tariffs would be ‘grave mistake’ Germany’s vice-chancellor and economy minister put Berlin on a collision course with Brussels by warning that imposing anti-dumping duties on solar panels from China would be a “grave mistake”.

America’s new treasury secretary Jack Lew has demanded that Europe do more to grow its austerity-afflicted economy amid concerns that Portugal was heading towards its second international bailout, reports The Guardian. Reflecting deep anxiety in the Obama regime about the risks posed by the single currency’s prolonged double-dip recession, Lew used a visit to Brussels to urge expansionary measures.

"Something must be done to deal with the eurozone's sovereign debt problems. This is something. Therefore we should do this." Philosophers call this the fallacy of composition, and it's behind many a "bold new policy initiative" - in Britain and around the world. Now the same screwy logic is causing a flurry of bureaucratic activity in Brussels and Berlin regarding the creation of a European Monetary Fund (EMF), which will be discussed later today at the European Commission's weekly meeting in Strasbourg.

Finance Minister Jim Flaherty’s determination to balance Canada’s budget in two years increases the likelihood the government will lean on Mark Carney’s replacement at the head of the Bank of Canada to boost growth in the nation’s economy. Flaherty’s plan to eliminate the deficit in time for elections in 2015 limits scope for further fiscal stimulus and increases the responsibility for the country’s next central banker to take the lead in responding to any economic slowdown.