ECONOMIC POLICY : AUSTERITY: PRESIDENT BARROSO'S EXPLANATION.
European Commission President Jose Manuel Barroso, considered a proponent of austerity as the only answer to the economic crisis, summed up his position in a few sentences, on 5 July in Vilnius.
Barroso was in the Lithuanian capital to inaugurate this country's six-month EU Council Presidency. Speaking at a press conference, he commented: "I said some time ago that there are certain limits, political and social limits, to a policy that is seen only as fiscal consolidation. This is a truism, it's self-evident. But it's also about structural reforms for competitiveness and investment for growth. Since 2009, the European Commission has been highlighting this need for a comprehensive policy mix, not just fiscal consolidation, but also concrete measures for sustainable growth".
Referring to Portugal and Greece, he noted that it is clear that markets were jittery recently due to a possible weakening of these countries' determination in terms of fiscal consolidation and structural reforms...
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