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Eurozone Crisis "The Germans have Gone Mad" - Prof. Jayati Ghosh

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Newsclick Production 5 June 2010

Prof. Jayati Ghosh of Jawaharlal Nehru University, talks about the economic crisis in Europe and the knee-jerk reactions of the various ruling Govts.

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Comment on "Eurozone Crisis "The Germans have Gone Mad" "

I am taking these notes down as I listen.........

The fact pointed out again and again by her that government cutting on spendings will weaken growth is a non proven notion. The Europeans have succeeded many times by cutting government spending.

Oh the problem seems to be that she has not realised that Europe has not gone out of another crisis as yet, the recession. German austerity is a reply to the recession as are the most other austerity measures of the other European crisis, its not a response to the "Euro" crisis.

And Germans have under taken the fiscal transfer of billions of dollars, its not waiting on the line, the Greek reforms are partly based on these European transfers. The German Chancellor has lost the majority in the upper as a reason for this.

Moreover the problem was not the working hours of the labourers the problem was the Greek government lying to their European partners about their fiscal situation.And so there is already a preparation for establishing an over arching statistical body in Europe which can access the government data on all countries.

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