Don’t waste the gains you already made.
The message from European Central Bank President Mario Draghi as he updated the European Parliament’s Economic Affairs Committee in Brussels.
He was addressing all the fiscally troubled eurozone countries, but with a particular emphasis on Portugal’s political turmoil: “Don’t unravel the progress that these countries, and Portugal especially, [have] achieved on fiscal consolidation. But make this fiscal consolidation growth friendly: lower your taxes, lower your current expenditures, make structural reforms. We know that fiscal consolidation, was and still is unavoidable.
But saying continue the austerity in a “growth friendly” fashion does not help Portugal’s politicians – and those of other economically weak eurozone countries – looking for ways to respond to the austerity fatigue among their people.