The Guardian:
This is a European suicide pact

In normal times in the EU, coordinated austerity would lower member states' debt. But instead it's making things worse
In the aftermath of the 2008 financial crisis practically all European Union countries opted for the same strategy to put their finances back on track: cut spending; increase taxes; reduce deficits. Research published by economic thinktank NIESR this week makes the first attempt (to our knowledge) to estimate the impact of this coordinated fiscal consolidation across the EU. What we have found won't make for pleasant reading in the treasuries of European governments.

In "normal times" fiscal consolidation would lead to a fall in debt-to-GDP ratios, but in the current circumstances it is likely to be self-defeating for the EU collectively. As a result of the deficit cutting plans now in train, debt ratios will be higher in 2013 in the EU as a whole, rather than lower. This will also be true in almost all the individual states (with the exception of Ireland). Coordinated austerity in a depression is self-defeating. The implication is that the strategy being pursued by individual members, as well as the EU as a whole, is making matters worse.

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