Europe's current calculations about how much of the deficit is structural and how much is caused by the downturn in the business cycle assume much of the budget deficits seen in the bloc's weakest economies are built-in, meaning they will persist even after the economy has returned to full strength. If a deficit is structural, rather than cyclical, more austerity measures--spending cuts or higher taxes--are required.

I am trying to figure out what formal school of economics would lead to this conclusion. Austrian? The prescription seems to be 'if the patient is ill, amputate. Still not well? More Amputation.' The economics of cannibalism.

"It is not necessary to have hope in order to persevere."