Professors caution against stringent austerity - HS in English | HS.fi

Professors caution against stringent austerity

A group of professors assigned to evaluate the economic policy pursued by the Government have criticised the measures adopted during the current electoral term, cautioning in a report unveiled on Tuesday that the tax hikes and spending cuts set for introduction this year will be too much to for the struggling public economy. Austerity measures are urgently needed to enhance economic sustainability, the professors acknowledge, but they should be postponed until 2017—2018.

15.1.2015 9:37

The report points out that stimulus to boost demand would currently be the default recipe for economic growth, but national and EU-level targets limit the leeway of the Government.

Jutta Urpilainen (SDP), a former Minister of Finance, admitted that the austerity measures laid out for this year are considerable but also called attention to the uncertainties associated with economic developments. Most of the decisions on the austerity measures in question were taken in 2012 and during last spring's framework session, when Urpilainen was serving as Minister of Finance.

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