Fri Feb 22nd, 2013 at 03:48:39 PM EST
[Hoisted from the weekend's Newsroom]
Today the European Commission revised its forecast, now predicting another year of recession for the austerity-stricken Eurozone. Olli Rehn again had the gall to speak about an "unexpected shortfall of growth". (Austerity-caused) recession naturally impacts deficit reduction targets. But what's interesting is that the Fiscal Compact won't be taken seriously:
Spain, Portugal and France likely to be spared further austerity despite poor EC forecasts - Business News - Business - The Independent
Commission Vice-President Olli Rehn signalled today that the organisation would refrain from using its powers under the Compact to levy fines on excessive borrowers and would instead give them more time to meet their fiscal commitments. “In the case of Spain, it seems that the structural fiscal effort has been undertaken and that there has been also an unexpected shortfall of growth” he said. Ministers from France and Portugal also said today that they would ask Brussels to push back the target by a year, as they blamed pinned the blame for their respective borrowing overshoots on the weak eurozone economy. The Commission now expects the 17 nation bloc to contract by 0.3 per cent over the course of 2013. Last autumn it expected 0.1 per cent growth.