EU's Olli Rehn signals end of 'Merkozy' austerity drive

The Telegraph ^ | 5/5/2012 | Emily Gosden

[bruinbirdman]

The European Union's top economic official has called for a new European investment pact, in the latest sign Brussels is preparing to reconcile Angela Merkel's austerity drive with the growth agenda of French presidential favourite François Hollande.

Olli Rehn - European Commissioner for Economic and Monetary Affairs

Olli Rehn, EU Commissioner for Economic Affairs, made the call in a speech on "restoring growth in Europe", on the eve of Sunday's French presidential election.

Mr Hollande remains favourite to oust Nicolas Sarkozy, curtailing the "Merkozy" partnership that has so far steered Europe's drive for austerity.

Officials are preparing for Mr Hollande to travel to Berlin to meet Angela Merkel for the first time, when he will urge the German chancellor to refocus the economic agenda on growth.

Elsewhere in Europe, pro-austerity politicians in Greek parliamentary and Italian local elections were preparing for a battering at the polls on Sunday, amid discontent at the impact of stringent cuts.

After weeks of increasing warnings that rigid austerity measures are hampering economic recovery, Mr Rehn tonight argued that while fiscal consolidation is essential it must be done in a "growth-friendly" way.

"While fiscal consolidation is unavoidable and structural reforms the key to growth in the medium-term, active public policies to promote sustainable growth are equally important," he said.

Indicating the EU has scope to ease its tough rules, he insisted: "The stability and growth pact is not stupid... the pact entails considerable scope for judgment when it comes to its application."

In a keynote address to the Institute of European Studies of the Vrije University of Brussels, Rehn mapped out the EU's plans to boost growth by using public spending to foster private investment.

"We need to further boost investment to supplement the other policies of our growth agenda,

[Army Air Corps]

So, he recommends a “Spend, baby, spend” policy.

[bruinbirdman]

"So, he recommends a “Spend, baby, spend” policy."

So, he just endorsed Hollande and his "growth pact"? He wants Hollande elected?

Euro Bonds here we come!

yitbos

[mosesdapoet]

Thrre is a rile about runoffs that we used to apply to a leader during aldermanic elections and let’s see if it will apply here ...The one going into the lead with the most votes with a bunch of candidates loses..

[mosesdapoet]

Rule not eile (got cateracts) BTW It’s called The “Chicago Rume”.

[Erik Latranyi]

European socialists are getting more confident.

They will double-down on deficit spending because they want a collapse.

The plans have already been made for an EU Super President who will eliminate the power of all these Chancellors, Presidents and Prime Ministers. Yeah, the EU Super President would not be elected, but selected by the most radical socialists.

They will dispose of the old Europe (and its debt) and restructure it into a single state.

Then, they can start the spending all over again and keep the masses dumbed down.

[Jabba the Nutt]

First, I LOL'ed at this howler: "...the growth agenda of French presidential favourite François Hollande."

A socialist growth agenda? Who'd kidding whom?

Second, so-called "austerity programs" are killers. They are all pain and no gain. They're political death for the so-called conservative politicians, who get suckered into going along with the "technocratic experts". They cut spending and the raise taxes. Austerity screws everyone, the beneficiaries of the welfare state AND the taxpayers.

You can only cut spending, if you also cut taxes, cut regulations, cut bureaucracy. You have to give people a way to make a living and a way to get ahead. That way, they'll focus their energies in doing just that. Otherwise, people focus their energies into political action, riots, vandalism and terrorism.

Austerity is a killer and it's politically stupid. Catnip for RINO establishmentarians.