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Governments will lose revenue, and so increase austerity.
The S.& P. action adds to the pressure on European leaders, and strengthens Mrs. Merkel as she pushes her peers to increase austerity measures.
"The whole debate over the last couple of weeks is playing against a backdrop of how much to increase austerity, not to invest in the economy," Neera Tanden, the president of the Center for American Progress, said last week.
The shift in the debate was evident in comments this week from the head of the International Monetary Fund, Christine Lagarde, who said that governments should not increase austerity in response to slower goals, even if it means missing their debt-reduction goals.
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Many have commented on the fact that increasing austerity leads to an increased incidence of racism and prejudice.
It demands an urgent rethink of health, education and housing services, especially in an era of increasing austerity.
If the Labour party continues to move nearer to the Conservatives and increases austerity measures instead of decreasing them, then they will lose more support, Mr Corbyn said.
Understandably, at a time of increasing austerity and falling wages, a lot of people are very angry about this, as evidenced by an ill-advised social media exercise by the British Gas services director.
Europe's leaders braced their nations for a turbulent year, with their beleaguered economies facing a threat on two fronts: widening deficits that force more borrowing but increasing austerity measures that put growth further out of reach.
She's quite interesting on Lowell's increasing austerity in his search for spare literalness, though possibly overgenerous in saying he brought about "the major change in the elegiac vocabulary of American poetry".
A big increase in the sales tax on electricity bills has been brought forward; and a planned transfer of bank pension funds to the state social-security system has been raised from €850m to €2.7 billion.Increased austerity and weaker demand for exports have combined to plunge Portugal into its deepest recession in 30 years.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com