Rising unemployment and negative growth show austerity is working

Via here, this really is remarkable:

In an interview with the Wall Street Journal, Carlo Pier Padoan said euro-zone governments are close to stabilizing and even cutting their debts relative to economic output.

But he warned that governments facing resistance from voters as unemployment rates rise may halt their fiscal consolidations before they achieve that “remarkable result.”

“There is a risk that reform fatigue increases significantly, with governments facing very strong social resistance, and that happens at the wrong moment, because we are almost there,” Mr. Padoan said. “Our message is, we have done a lot in Europe, let’s not waste it.”

“Fiscal consolidation is producing results, the pain is producing results,” he said.

He added that euro-zone policy makers need to do a better job of communicating their successes to a weary population.

“There is an issue of communication,” he said. “It’s as if we will do more of the same and never stop. But we are achieving results, and we will see those results sooner than expected.”

Like other international financial institutions, Mr. Padoan said the OECD is set to cut its growth forecasts for the euro zone, and now fears that the currency area may face a long period of stagnation.

So, unemployment in the EU has gone up to 12.1%, including 27% in Spain and Greece, youth unemployment (under 25) is at 23.5%, 59.1% in Greece, and GDP is expected to decrease again this year, but austerity is working. Wow, imagine what things would be like if it wasn’t working. Also, note that last bit–a long period of stagnation obviously doesn’t mean austerity isn’t working. This is a perverted way of looking at the world.

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