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But what is the right dose of austerity?
As a result, Osborne used his speech to announce another dose of austerity.
A fresh dose of austerity will make all these problems worse.
Any compromise, he says, would probably involve "a good dose of austerity".
But no payroll tax cut extension, which means a fairly big dose of austerity despite the deal.
Mr. Rajoy would then have to sell another dose of austerity to voters who would not believe him.
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The solution to that central issue is not stiff doses of austerity for all.
And so increasing doses of austerity were administered while the debt grew larger, forcing creditors to extend more loans in exchange for even more austerity.
That is mainly because Mr. Rajoy came up with a new budget that contains further doses of austerity.
The classic IMF cure always involved doses of austerity combined with devaluation in order to deliver an export boost to demand.
Germany and its rich neighbors are also insisting that Greece, Portugal and other debtor countries accept even stiffer doses of austerity to regain the confidence of investors.
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Justyna Jupowicz-Kozak
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