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Austerity increases already strong recessionary pressures.
Greece has also raised the odds that, as the pain of austerity increases in countries like Portugal and Ireland — to say nothing of Spain and Italy further down the road — the temptation for other countries to turn a similar legal trick will grow stronger.
While Mr. Levkovich does not see that as a significant threat to the bottom line of most American businesses — he estimates that Europe accounts for about 8.5 percent of sales for the typical company in the Standard & Poor's 500-stock index — the psychological effects on global markets will be magnified if political opposition to austerity increases.
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More migrants started to come from within the EU as austerity increased labour mobility within the free movement rules.
There is no doubt that the underlying reasons for the increase – youth unemployment, the economics of austerity, increased deprivation – are cause for grave concern.
He also promises budget austerity, increased social spending, the rise of the rule of law and an end to ingrained political corruption.
In fact, the European Central Bank has criticized governments for applying the wrong kind of austerity, increasing sales taxes for example when they could cut government bureaucracy.
Contrary to what is claimed by the advocates of austerity, increased debt is not consistently associated with high interest rates nor lower economic growth rates [ 10- 12].
Greece now faces a fresh wave of austerity policies – increases in VAT, public sector wage cuts, less generous pensions – that will put the brake on activity.
Co-Founder Mark Peatey says the era of austerity is "increasing the use of finance to buy cars because of the increased availability of more flexible low cost finance options".
"We see a very direct correlation between austerity and increasing child hunger in our schools".
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