According to a study conducted by CESifo and cited by Deutsche Welle, the austerity programs that were imposed on debt-ridden EU members were painful, but inevitable.
The economists claim that while there is no doubt that the austerity program and reforms imposed in exchange for financial aid further increased the recession, there was no way to avoid such a development.
The study explains that the crisis stemmed from the Eurozone’s economic inequality, excess focus in certain sectors of the economy (such as construction), as well as making investments without taking measures to support the competitiveness of national economies. As such, the ensuing recession is part of the consolidation process.
