September 6 , 20123.41pm BST Conditionality test may scupper OMT Graeme Leach, chief economist at the Institute of Directors, put his finger on one potential flaw in the ECB's new OMT plan – can a peripheral country such as Spain really agreed to further austerity through the 'conditionality' demanded by Draghi.
Then, as the Greek economy unraveled, Greece agreed to further austerity and signed an agreement for a $96 billion loan to cover its debts.
Further strikes in Greece over the austerity measures aimed at wrangling that country's debt crisis under control sapped the euro, down below $1.22, and renewed concerns that the U.S. recovery is running out of steam.
If the mood turns sourer, it may be harder for the new Irish government led by Enda Kenny to push through the further austerity that is needed.Lender countries are also becoming restive.
See articleElbow GreeceThe Greek cabinet agreed to further austerity measures being demanded by European and international creditors before Greece receives its next tranche of bail-out money.
If the current centre-right coalition government wins, France will be better able to press on with economic reform and impose the further austerity needed if it is to join Europe's single currency.
But the ex-Marxist appears to have misread the response of cadres to the prospect of further austerity, and the reaction of young people – now key to the vote's outcome – already hit by record unemployment.
But the company was cautious about the outlook, especially for the UK defence industry with the prospect of further austerity measures now the Conservatives have won the general election.
The austerity zeal risks tipping the continent back into recession and a downward spiral of austerity as pitiful growth prospects undermine budgetary targets and ramp up debt burdens, meaning further austerity is required.
The Obama administration, by contrast, has backed a bipartisan bill to impose further budgetary austerity on the island, coupled with meaningful debt reduction.
