IMHO, the 12 signatories are right about that. Deregulation and labour market reform (e.g. weakening the stranglehold of unions; making it easier to hire and fire workers, etc.) have been shown to lead to economic growth.
OTOH, austerity is also needed. The problem is too much debt — adding more debt (so-called “stimulus”) is not the cure. Austerity will be a bitter pill to swallow — short term increases in unemployment, and other hardships. However, these are just the sorts of pressures that push a “free” economy to reinvent itself and create long-term growth. (Provided the reforms mentioned above are also put into place.)
“Austerity will be a bitter pill to swallow — short term increases in unemployment, and other hardships. However, these are just the sorts of pressures that push a “free” economy to reinvent itself and create long-term growth.”
This was what Eastern Europe had to do after the wall came down; those that didn’t suffered for it.